Kerala’s economy is India’s 9th largest economy with an annual gross state product of Rs 9.78 lakh Crore in 2020-2021. In the same period, the per capita income of Kerala was Rs 2,57,711, which is the 6th largest in India.
Do you also want to set up your business in Kerala? If yes then you have come to the right place because today we are going to tell you about the best 12 business ideas in Kerala. Before this, let us know some more features about Kerala: –
| Particulars | Data |
| GDP By Sector | Agriculture 12%, Industry 23%, Services 66% (2021-22) |
| GDP Per Capita | ₹352,151 (US$4,410) (2023–24) |
| GDP Rank | 11th |
| Human Development Index | 0.752 high (2021) (1st) |
| GDP Growth | 12% (2021–22) |
| Main Industries | Shipping, IT, Tea Manufacturing, Tourism etc. |
Best Business Ideas in Kerala
Tourism
Kerala figures among the most visited states in India. In 2022, 3,45,549 foreign visitors came to Kerala and in 2021, 60,487 foreign tourists came to Kerala. From this, we come to know that in the year 2022, the tourism sector of Kerala has shown a growth of 471.28%.
No. of Tourists Between 2017 and 2022
| Year | Total Tourists Arrived (Domestic + International) |
| 2017 | 15,765,390 |
| 2018 | 16,701,068 |
| 2019 | 19,574,004 |
| 2020 | 5,329,727 |
| 2021 | 7,598,104 |
| 2022 | 19,212963 |
How to Start a Tourism Business in Kerala :
- Market Research
- Select your Business Model (Travel Agency, Homestay etc.)
- Decide the Location for your Office
- Complete Legal Framework
- Build Partnerships and Networking
Tour Guide
As we have shown the data of visitors in the tourism business, you must have understood that there is a lot of potential in the tourism sector in Kerala. Visitors need a tour guide because they do not know about the tourist places of Kerala and their history. If you become a tour guide then you can easily earn Rs 2 to 3 lakh per month.
How to Become a Tour Guide in Kerala:-
- First of all the applicant has to visit the website of Kerala Ministry of Tourism Office.
- After that, the applicant has to visit the tourism office and receive an application form from there.
- Fill up the application form and keep in mind that you have all the documents which are mentioned in the required documents.
- After submitting the form, the authorities will verify your application and you will also get a call from that authority for an entrance test.
- Then the authorities will release a merit list of who has passed the entrance test.
- A guide training course will be conducted for admitted candidates.
- Then, you will have a written test and viva, after passing it you will get a certificate along with a tourist guide license.
Spice Business
A lot of spices are found in Kerala. You can earn 3-4 lakhs per month by doing business with those spices. These are very famous and widely found spices in Kerala:- pepper, vanilla, cardamom, clove, cinnamon, nutmeg, ginger etc. The revenue of the Indian spice market was around Rs 87,000 crore in 2022. And the project expansion of the spice market can be up to Rs 20,00,000 crore by 2030.
How to Start a Spices Business:-
- Select the spices you want to sell.
- Register for Spice Board Certificate.
- Set your location
- Contact a spices supplier or farmer.
- Register your brand
- Now, Launch your Spices Business
Organic Farming
Farming without using any chemical fertilizers and pesticides is called organic farming. The scope of organic farming is huge in Kerala and all over India. Because when we consume things grown with chemicals, they cause many harmful effects which have a huge impact on our health. Consuming organic things does not cause any harm to our body because no harmful chemical is used in it.
Benefits of Organic Farming :
- It Sustains soil fertility.
- Reduces the risk of Cancer.
- Beneficial for our health.
How to Start Organic Farming Business in Kerala:-
- Apply for organic farming certification at any testing centre accredited by the Agricultural and Processed Food Products Export Development Authority (APEDA).
- Select the crop you want to grow
- Arrange capital
- Set up the irrigation system.
- Market your Produce.
Open a Handicraft Store
No matter how advanced technology is, some people like only handicraft things. Their first choice is handicraft products. During the British rule, they almost destroyed our handicraft industry but after independence, the demand for handicraft products started increasing again.
The future of the handicraft industry will be bright and there will be a lot of growth in it. You can make such unique products in handicraft items that people will like very much. The CAGR of the handicraft industry can be up to 11.8% by the year 2032. The size of the global handicraft market is estimated to reach USD 1972.32 billion by the year 2030.
How to open a Handicraft Store:-
- Select your Niche
- Define your unique selling proposition (USP)
- Deciding whether you will open a handicraft store online or offline
- Purchase Raw Material
- Make and pack products
- Increase the reach of your products with the help of marketing.
Yoga Classes
Due to this increasingly busy lifestyle, most people have started paying a lot of attention to yoga. Yoga means the union of the soul with God. By doing yoga our body becomes flexible and we also remain healthy. By opening your yoga classes, you will make people aware of health and at the same time, you will also earn money.
How to Start Yoga Classes in Kerala:-
- Get complete information about yoga.
- Find Location
- Get your poster printed and also get it advertised in newspapers or magazines.
- Build good relations with people.
Start a Photography Studio
The growing trend of social media and tourist photography is increasing in Kerala as well as across India. All the companies require high-quality images and the visitors who come to visit also need a good cameraman so that they can capture these memories. You can also sell the services of a photography studio online like selling photos on the website.
How to Start a Photography Studio:-
- Select your Photography Niche
- Purchase equipment like DSLR, Lights etc.
- Decide a Unique Name for your Photography studio
- Create a Portfolio for Showcase
- Connect with Clients
Make Agarbatti (Incense Sticks)
Making incense sticks is a very profitable business. Incense sticks are used all over India and there is a high demand for incense sticks in Kerala also. Raw materials for making incense sticks are easily available in Kerala like sawdust, bamboo sticks and charcoal powder. There are only few manufacturers of incense sticks in India. If you start an agarbatti business then you can achieve a monopoly in this business and there is no need for much investment in this business.
Start Pickle Making Business
The use of pickles has been prevalent in India and will continue to be so. There are many types of pickles like mango, lemon mix, ginger etc. If there is no pickle with the food then the food does not have the taste that comes with the pickle. Indians like pickle a lot and why not, its taste is like Rasgulla without sugar syrup. To do pickle business, you should know the process of making pickles. You can also make some unique pickles which are not available in the market so that your brand will look different from others’ brands.
Sell Banana Chips
Banana and Jaggery-coated chips are very famous in Kerala. Banana chips are very tasty. Banana chips are fried in coconut oil and after one or two processes, they are completely ready. Banana chips are consumed by everyone in Kerala, whether children or adults. You can make a profit by selling banana chips. Banana chips are a unique idea, and if you are interested in making them then you should definitely try it. The banana chips industry is worth Rs 750 crore and the CAGR of the snack food market in India is 7-8%.
Transport Services
The movement of visitors is high in Kerala. Along with this, they also need transport services so that they can go from one tourist place to another. Ola and Uber have also expanded taxi services in Kerala. There are also many types of transport services such as logistics services, ambulance services and car rental services. India’s current transportation market is US$100 billion. The CAGR (Compounded Annual Growth Rate) of the transportation sector 2018-2022 is 9-10%.
Open a Grocery Shop
With the increasing population, people’s demand for groceries also increases. Keeping this demand in mind, grocery shop is a good business idea. It is estimated that the size of the Indian grocery market will be USD 289.29 billion and it will grow at a CAGR of 8.0% between 2022-2027. The disposable income is increasing and the share of grocery market in it is very high. Opening a physical grocery store will cost more, but if you open an online grocery store, it will require less investment.
