Post-Covid Business Opportunities in Manufacturing Industry in India

Post-Covid Business Opportunities in Manufacturing Industry in India

Around two years ago, the world saw the emergence of the covid-19 pandemic that changed the lives and thinking patterns of people forever. In spite of the damage caused by the pandemic, it also caused many positive changes in the manufacturing industry in India, opening up new avenues for entrepreneurs.

In the post-pandemic world, many niche sectors with innovative products have come to the forefront. The growing awareness towards health led to the growth sectors like nutraceutical foods, millet-based foods, etc. Supply chain disruptions due to lockdowns in China and rising anti-China sentiments made India minimize overdependence on imports from China, giving rise to electronics manufacturing, API manufacturing, toy manufacturing, etc. Accordingly, the Government of India is also promoting domestic manufacturing through initiatives like Atmanirbhar Bharat and others. This has garnered interest from many new and existing entrepreneurs to enter or diversify into these trending sectors.

In this article, we will discuss the top trending sectors in the Indian manufacturing industry with great future potential in the post-pandemic period.

1. Nutritional Foods

Nutritional Foods

After the covid-19 pandemic, the health consciousness has increased a lot among people. These days, people are changing their food habits with a shift towards nutritional and healthy foods. The tremendous growth in the demand for nutritional foods such as millet-based foods products, vegan and plant-based meat, protein bars, organic drinks, sugar-free foods is the result of this shift. Many companies in the market are coming with innovative products to meet the changing customer consumption patterns. This is a great opportunity for MSMEs that are well known for innovation to enter into the nutritional foods vertical. Nutritional foods manufacturing business can be started with an initial budget of Rs. 15 to Rs. 20 lakhs.

2. Electrical & Electronics Manufacturing

India is one of the largest electronics markets in the world. But, the sad truth is that India mainly depends on imports from China for various electronics such as integrated circuit boards, digital photo frames, mobile accessories, digital cameras, water heaters, exhaust fans, components used in refrigerators and air conditioners, etc. Currently, India has become self-reliant in mobile phone manufacturing with more than 200+ mobile manufacturing units in the country. Today, India ranks second in the manufacturing of mobile phones in the world. Along with mobile phones manufacturing, the government is trying to make India self-reliant in other electrical and electronics as well.

3. API Manufacturing

API Manufacturing

India is known as the pharma hub of the world and accounts for the majority of the global medical supplies. But, India is dependent on APIs from China which are key to manufacturing medicines. India imports more than 50% of these APIs to meet domestic requirements. There is a huge supply and demand gap in the country in APIs. As India is reducing imports from China, it is the best time for local manufacturers to invest in API manufacturing. Businesses can also avail benefits from the PLI scheme announced by the government for these APIs and the scheme would help to provide a boost to businesses across the value chain in API manufacturing.

4. Toy Manufacturing

India has a rich legacy of toys and board games. The country is home to the two most popular ancient board games chess and ludo. India is a major market for toys in the world. But India’s toy industry contributes to a mere 0.5% of the global toy industry and imports toys from other countries to meet the local demand. Given the rich legacy, huge domestic demand and low supply, toy manufacturing is a profitable business idea in India. The Government of India is also keen to promote the toy manufacturing industry in the country. In line with the central government, various state governments are also taking measures to attract investments into toy manufacturing.

5. Defence Manufacturing

Defence is a sector of strategic importance to India. So, it is essential to be self-reliant especially in the defence sector. The Government of India is pushing to increase the participation of domestic private players in defence manufacturing. On similar lines, the government recently banned more than 200 defence products including sensors, simulators, weapons and ammunitions like helicopters, mini UAVs for surveillance, next generation corvettes, tank engines, medium power radar for mountains, etc. from imports. The government would encourage local defence manufacturing industries to manufacture these products locally. The Defence Ministry of India recently approved Rs. 499 crores for R&D in the defence industry which will be to provide financial assistance to 300 domestic MSMEs and start-ups in the sector.

6. Cosmetics Manufacturing

With the growing urbanization and rising of the standard of people, the demand for cosmetics is increasing. However, there has been a shift towards organic and natural cosmetics due to side effects caused by artificial cosmetics that are full of chemicals. Due to the presence of many brands in the market, innovation and quality are key to success in this segment. Therefore, businesses must pay great attention to R&D before starting manufacturing.

7. Chemical Manufacturing

Chemical Manufacturing

India is the sixth-largest producer of chemicals in the world and one of the largest consumers of many chemicals in the world and imports many chemicals to meet domestic demand. India mainly imports organic chemicals from China but is now trying to minimize imports and become self-reliant, due to which there lies a great opportunity for investments in the chemical manufacturing industry. Apart from the domestic market, opportunities in the international market are also huge. The sector offers great business opportunities to both large players as well as MSMEs. Some of the verticals in the chemical industry that entrepreneurs can explore are agrochemicals, alcohol-based chemicals, speciality chemicals, etc.

8. Plastic Alternatives

Plastic Alternatives

In addition to the health consciousness, awareness towards environmental pollution is also increasing among people these days. Single use plastic which is non degradable is one of the major causes of environmental pollution in the world. To curb the pollution due to plastic waste, the Government is trying to implement a ban on the usage of single use plastic. Therefore, the demand for plastic alternatives, particularly in the packaging industry. Some of the alternatives to plastic include coconut coir, banana leaves, hemp, sugarcane bagasse, paper, stainless steel, glass, etc. These business ideas are very viable for MSMEs as the investment required to start these businesses is relatively less.

9. Geotextiles


Geotextiles are synthetic textiles that are permeable in nature. They are produced from polyester and other polymers. The permeable nature of these textiles helps to increase soil stability and reduce soil erosion. These textiles are mainly used in works related to roads, drainage and civil constructions as they help to maximize the durability of the roads and civil structures. They are also used in geotechnical and environmental engineering design. Given the various applications, the demand for geotextiles is increasing with the growing urbanization and industrialization. So, geotextiles manufacturing is a business vertical with great future potential that entrepreneurs can explore.

10. Plant-based Fibres

Fibres obtained from plants such as jute, hemp, banana, pineapple, sugarcane, coconut, and others are called plant-based fibres. These fibres are obtained from various parts of the plant like leaves, seeds, fruits, etc. These are used in the manufacturing of clothes and carry bags. These innovative fibres are considered to be more sustainable than traditional fibres. Plant/fruit-based fibres are one of the trending products in the fashion industry today with great demand from fashion-savvy millennials. This makes it a profitable business venture for entrepreneurs.

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Having said that, many entrepreneurs are sceptical about which sector to enter into, considering the availability of a wide range of options. At SolutionBuggy, we help entrepreneurs select the industry to enter and the product to be manufactured based on various factors and their preferences like budget, location, areas of interest, availability of raw materials, local demand and supply, etc. If you are looking for experts who can assist you in starting your manufacturing business, kindly register with SolutionBuggy and get help from India’s top experts.


In the post-pandemic world, many niche sectors in the manufacturing industry with innovative products have come to the forefront. So, the future of the manufacturing industry in India looks very promising.

The budget required to start a manufacturing business varies depending on the product that you choose to manufacture.  

MSMEs constitute a major part of the manufacturing industry. They play an important role across the value chain.  

API manufacturing, nutritional foods, toy manufacturing, electrical and electronics manufacturing, defence equipment manufacturing, plastic alternatives, etc. are some of the best manufacturing business ideas in the post pandemic period.

To start a manufacturing business first, you need to do product identification and market research, following which you can go for plant setup. It is advisable to seek help from a manufacturing consultant to start the manufacturing business.

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