Kerala is one of India’s most unique markets, known for its literacy rate, tourism appeal, strong NRI population, and stable consumer demand. Whether you are a beginner or an aspiring entrepreneur with limited capital, Kerala offers multiple low-investment business opportunities that can generate steady income.
This guide covers the best low-investment business ideas in Kerala, expected investment, potential earnings, and tips to get started.
Why Kerala Is Ideal for Low-Investment Businesses
Kerala has strong advantages for new entrepreneurs:
- High literacy rate → easy to build skilled teams
- Booming tourism sector → hotels, local services, rentals in demand
- NRI-driven economy → high spending power
- Growing online shopping and digital adoption
- Strong agricultural & food product base
All these factors make Kerala a powerful region for small and micro businesses.
Top 15 Low-Investment Business Ideas in Kerala
- Homemade Food Tiffin Service
Kerala has large numbers of office workers, students, and bachelors who need hygienic homemade food delivery.
Investment: ₹10,000–₹30,000
Monthly Income: ₹25,000–₹80,000
Why it works: High demand, minimal equipment, can start from home.
- Spices & Masala Powder Making
Kerala spices are world-famous — pepper, cardamom, cinnamon, cloves, nutmeg, etc.
Investment: ₹20,000–₹50,000
Monthly Income: ₹30,000–₹1,00,000
How to start:
Buy raw spices → powder → pack → sell to local shops or online.
- Coconut-Based Products
Coconut is an essential part of Kerala’s agriculture.
Products you can make:
- Coconut oil
- Coconut chips
- Virgin coconut oil
- Coir crafts
Investment: ₹20,000–₹1 lakh
Profit margin: 25%–40%
- Banana Chips Manufacturing
Kerala-style banana chips have national demand.
Investment: ₹25,000–₹1,00,000
Monthly Income: ₹40,000–₹1,20,000
Customers: supermarkets, local stores, online buyers.
- Ayurveda & Herbal Products
Kerala is known as India’s Ayurveda capital.
Low-investment ideas:
- Herbal soaps
- Ayurveda oils
- Herbal hair oil
- Handmade creams
Investment: ₹15,000–₹50,000
Demand: Tourists, locals, online customers.
- Small Juice & Snacks Shop
Kerala’s hot climate creates year-round demand for fresh juice.
Investment: ₹30,000–₹70,000
Profit margin: 20%–35%
Sell:
- Fresh juices
- Shakes
- Kulukki sarbath
- Snacks
- Eco-Friendly Products Business
Kerala strongly supports eco-friendly culture.
Sell products like:
- Jute bags
- Coir mats
- Bamboo products
- Areca plates
Investment: ₹10,000–₹40,000
Demand: hotels, events, households.
- Local Tour Guide Services
Kerala tourism is booming in Kochi, Munnar, Wayanad, Alleppey, Kovalam.
Investment: ₹5,000–₹15,000
Income: ₹1,500–₹5,000 per group/day
Requirements: English-speaking, local knowledge.
- Homestay or Room Rental
If you have extra space, convert it into a homestay.
Investment: Minimal
Earnings: ₹15,000–₹80,000 per month
Platforms: Airbnb, Booking.com, MakeMyTrip.
- Mobile Tea & Coffee Stall
A trending idea requiring very low investment.
Investment: ₹10,000–₹20,000
Income: ₹20,000–₹60,000 per month
Sell near tech parks, bus stands, colleges.
- Freelancing & Online Services
Ideal for educated youth.
Skills you can offer:
- Content writing
- YouTube video editing
- Social media management
- Graphic design
- Digital marketing
Investment: Almost zero
Income: ₹20,000–₹1 lakh/month
- Kerala Saree & Handicraft Reselling
Resell products on Instagram and WhatsApp.
Popular items:
- Kasavu sarees
- Handicrafts
- Spices gift hampers
Investment: ₹5,000–₹20,000
- Fish & Meat Home Delivery
Very high demand in Kerala’s urban areas.
Investment: ₹10,000–₹25,000
Income: ₹30,000–₹80,000
Partner with local suppliers, deliver fresh products.
- Printing & Photocopy Shop
Located near colleges, schools, courts, or offices.
Investment: ₹40,000–₹1,00,000
Income: ₹25,000–₹70,000/month
- Mobile Repairing & Accessories Shop
Kerala has high smartphone penetration.
Investment: ₹20,000–₹50,000
Income: ₹30,000–₹1 lakh/month
Which Business Is Best for Kerala? (Top 5 Picks)
| Rank | Best Low-Investment Idea | Why It Works |
| 1 | Spices business | High demand + exports |
| 2 | Tourism-based services | Kerala’s global popularity |
| 3 | Coconut products | Abundant raw material |
| 4 | Banana chips business | Kerala specialty snack |
| 5 | Homemade food service | Urban demand rising |
How to Choose the Right Business in Kerala
Consider these factors:
- Your skills & interest
- Demand in your city/village
- Competition
- Required licenses (FSSAI, GST, shop license etc.)
- Scaling potential
- Availability of raw materials
Final Thoughts
Starting a business in Kerala doesn’t require huge capital. Whether you live in Kochi, Kozhikode, Thiruvananthapuram, Thrissur, or a small town—many low-investment business ideas can help you earn stable monthly income.
Focus on quality, branding, and customer relationships. Even a small business can grow big with the right strategy.
Shashi Kant is the Founder and Editor of BusinessScroller.com, a leading platform for business insights, finance trends, and industry analysis. With a passion for journalism and expertise in business reporting, he curates well-researched content on market strategies, startups, and corporate success stories. His vision is to provide valuable information that empowers entrepreneurs and professionals. Under his leadership, BusinessScroller.com has grown into a trusted source for in-depth articles, customer care guides, and financial expertise.
