15+ Small Business Ideas in Odisha for 2025

Odisha is home to the largest lion safari in the world and also a rich cultural heritage. The allure of Odisha, however, goes just beyond this. The state has maintained growth of over 7% and attained the highest GSVA (gross state value added) of 10% in the industrial sector out of 19 states. What this means is that opening a business in Odisha is not just easy but profitable, as well.

From Bhubaneswar and Cuttack to Puri and wherever you are, Odisha is full of business possibilities waiting to be explored. The state government has also created several business opportunities, such as Startup Odisha, providing financial assistance, organizing training, and making it easier for entrepreneurs to access markets. Here are the 15+ practical and easy-to-start Odisha startup ideas that work well with the state’s geography, culture, and economy.

Why Start a Business in Odisha?

Odisha is quickly becoming one of India’s most attractive business locations because of its abundant natural resources, pro-business laws, and quickly expanding infrastructure. It has a significant presence in agriculture, metals, and mining.

The state also has growing investments in manufacturing, IT, and tourism. With a government that is supportive and has easier access to trained labour, Odisha offers a favourable environment for the growth of both small and big businesses. If you want to start a business or expand it, Odisha has features that attract attention and opportunities waiting to be explored.

Is Odisha a Good State to Start a Business?

The state’s economic growth is stable due to better infrastructure. Shipping and receiving goods in Odisha is simple due to industrial parks, highways, and improved connections at ports. It is also blessed with different minerals, vegetables, fruits, and fabrics. If your operations include sourcing, manufacturing, or processing, you can save time and money by working closely with the source.

The tourism industry of Odisha is becoming more popular. Tourists often visit Odisha for Puri, Konark, and Bhubaneswar. This is why hotels, stores, and transport services are always in demand in Odisha. This allows entrepreneurs to be creative and has high tourism potential.

Why Open a Business in Odisha?

• Simple Registration: The Odisha MSME policy makes it easier for small businesses to register and obtain the necessary approvals from one office.
• Loans Without Collateral: Through cooperative arrangements, the state allows people to get collateral-free business loans in India.
• Creating a New Unit: Building a new unit can save on capital costs, interest fees, and electricity tariffs.
• Skill Focus: Odisha offers special training programs to prepare local workers for various industries.
• Startup Ecosystem Boost: Entrepreneurs can now grow their ideas into businesses with the help of incubators, money from innovation funds, and experienced mentors.

15+ Profitable Small Business Ideas in Odisha (2025 Edition)

In Odisha, many entrepreneurs are starting businesses that rely on their region’s expertise rather than quick trends. Starting a farm or a digital company can lead to success. If you want to begin a business in Odisha that costs little but could grow over time, this guide explains each step for you in different sections:

A. Agriculture & Food Processing

1. Organic Vegetable Farming (especially in Tribal Regions)

There is a growing demand for organic vegetables in the market due to the benefits of organic farming and the harms of inorganic farming. The tribal parts of Odisha have rich land that is perfect for organic farming. Besides, the certification guaranteed by the government makes it simpler to begin your work. You can sell your produce to premium markets in Bhubaneswar or other cities.

• Estimated Investment: ₹3–5 Lakhs
• Location Suitability: Tribal/rural areas (Koraput, Rayagada)
• Profit Potential: High, with scalability into packaged organic products

2. Mushroom Cultivation

Ambitious, but don’t have the land to grow food? You can set up a mushroom farm. You only need a little effort and still be very productive, growing even in small spaces. The weather of Odisha is humid and ensures that harvesting is accessible throughout the year. You can supply mushrooms to hotels, restaurants, and mandis and experiment with pickling or drying them to create another product.

• Estimated Investment: ₹2–4 Lakhs
• Location Suitability: Semi-urban and rural
• Profit Potential: Moderate to high with strong local demand

3. Rice Milling or Mini Flour Mill

Odisha is a leading paddy producer and retains its title every year. You can join the state’s agricultural sector by creating a rice or flour mill. There is a constant need from neighbouring states and small retail business owners. You also have the option to get supply contracts through nutrition schemes in your area.

• Estimated Investment: ₹5–10 Lakhs
• Location Suitability: Rural / semi-urban belts
• Profit Potential: High with consistent demand

4. Pickle, Papad & Local Snack Processing

Are you looking for a startup business that requires little investment in Odisha? One of the best choices is making traditional snacks, like pickles, papads, and badi, which are popular across many parts of India. You can use Odisha’s local food heritage and list your items on SHGs, fairs, or Swiggy Minis. Include a local brand name to be noticed more easily.

• Estimated Investment: ₹3–6 Lakhs
• Location Suitability: Urban / semi-urban / coastal
• Profit Potential: Moderate to high, great for women entrepreneurs

5. Fish Farming (Aquaculture)

Starting a fish farm is an excellent idea in Odisha, particularly along the coast and rivers. You can also get state support for your aquaculture project. You can grow rohu, catla, or even rare types of fish. Most bulk purchases are used by hotels, exporters, and local markets.

• Estimated Investment: ₹4–8 Lakhs
• Location Suitability: Coastal/rural (Kendrapara, Jagatsinghpur)
• Profit Potential: High with long-term scalability

B. Handicrafts, Culture & Local Products

6. Terracotta or Handloom Product Store (Pipli-based)

If you are passionate about local crafts, opening a terracotta or handloom store in Pipli will help you meet artists and tourists at the same time. Running on culture-driven purchases and fair-trade aid, this small business in Odisha succeeds well. The key benefits of starting this business are low inventory costs and local partnerships. You can also get MSME loans for various business needs.

• Estimated Investment: ₹4–7 Lakhs
• Location Suitability: Urban / tourist hubs (Pipli, Bhubaneswar)
• Profit Potential: Moderate to high with export potential

7. Palm Leaf Art or Pattachitra Workshop & Online Sales

Heritage palm leaf art, or pattachitra paintings, is one of the most unique businesses to start in Odisha. This business needs a low-cost setup, and you can expand it by collaborating with schools and e-commerce platforms.

• Estimated Investment: ₹3–5 Lakhs
• Location Suitability: Urban / semi-urban (Bhubaneswar, Cuttack)
• Profit Potential: Moderate, scalable with online reach

8. Applique Work (Pipli Style) Retail or Export

Pipli’s style of craft attracts demands both locally and globally due to their lively appliqué textiles. This low-cost business in Odisha uses traditional methods and creates modern designs. You can attract more customers by starting a workshop or store near popular tourist spots.

• Estimated Investment: ₹3–6 Lakhs
• Location Suitability: Urban / tourist-centric (Pipli, Bhubaneswar)
• Profit Potential: Moderate to high with export scope

C. Tourism, Travel & Local Services

9. Budget Homestay Near Puri or Chilika

Tourism is a big industry in Odisha and it is now growing more. This is why opening a budget homestay in Puri, Chilika, or other tourist places proves to be a lucrative business idea. You can offer guests an experience of the locals’ culture at reasonable rates, which they do not get from high-end hotels. The business in Odisha offers a low-cost investment and good income opportunity, and it draws many guests who often return.

• Estimated Investment: ₹5–10 Lakhs
• Location Suitability: Coastal / tourist spots (Puri, Chilika)
• Profit Potential: High, especially in peak seasons

10. Travel Guide + E-Rickshaw Rental for Tourists

A tourist guide and e-rickshaw rental company is a wise business decision in Odisha’s historic cities like Puri, Bhubaneswar, and Konark. Offering guided tours in electric rickshaws can satisfy both convenience and interest as more travellers look for genuine and environmentally friendly travel experiences. This business idea is both lucrative and has an effect since it takes little capital.

• Estimated Investment: ₹3–6 Lakhs
• Location Suitability: Urban / tourist-heavy (Bhubaneswar, Puri)
• Profit Potential: Moderate to high, scalable with fleet expansion

11. Temple Tour Packages / Online Booking Platform

Launching an online platform for temple travel packages can capitalise on the expanding spiritual tourism sector. This is because Odisha is home to some of India’s most famous temples, such as the Jagannath Temple in Puri and the Lingaraj Temple in Bhubaneswar. This business idea combines technology and tradition by providing multilingual guides, real-time booking, customisable itineraries, and extras like Prasad delivery or local stays.

• Estimated Investment: ₹4–7 Lakhs
• Location Suitability: Urban / tourist hubs (Puri, Bhubaneswar)
• Profit Potential: High, especially with holiday season demand

D. Retail & Daily Use

12. Mobile Recharge & Utility Payment Centre

Starting a mobile recharge and utility payment centre in developing Odisha’s digital economy helps you earn income from daily customers. The business works well throughout the state, serving cities and semi-urban areas. It provides key services at a low investment and draws in many repeated customers.

• Estimated Investment: ₹2–4 Lakhs
• Location Suitability: Urban / semi-urban
• Profit Potential: Moderate to high with regular demand

13. Eco-Friendly Bag Manufacturing

Establishing an environmentally friendly bag manufacturing facility in Odisha is a viable and expandable business concept as environmental consciousness grows. Single-use plastics are also subject to increasing regulations. Styled reusable shopping, packing, and gift bags may be made from locally available materials like cotton, jute, or repurposed fabric.

• Estimated Investment: ₹3–6 Lakhs
• Location Suitability: Urban / semi-urban
• Profit Potential: Moderate with room to scale

14. Mini Grocery Store with Local Brands

Local Odisha brands and organic products are most in demand among people. Focusing on opening a mini grocery store with local brands has high benefits. It offers steady profits and the scope to expand, which is ideal for urban and semi-urban markets.

• Estimated Investment: ₹4–8 Lakhs
• Location Suitability: Urban / semi-urban
• Profit Potential: Moderate to high with consistent sales

E. Digital, Freelance & Urban Startups

15. Freelance Digital Marketing / Content Agency

With increasing businesses in Odisha, now is an excellent time to start a freelance agency focusing on digital marketing or content management. Focus on small and medium-sized businesses and startups that do not have a team to handle their online advertising needs.

• Estimated Investment: ₹2–5 Lakhs
• Location Suitability: Urban / semi-urban
• Profit Potential: High with recurring clients and expanded services

16. Tuition Center or Skill Development Institute

Starting a tuition centre or skill development school can have a significant influence on the business world. The growing number of young people in Odisha and the increased competition for employment make this business idea both viable and profitable. This business idea provides a consistent income but also helps in closing the employment and educational gaps in urban and semi-urban regions.

• Estimated Investment: ₹3–6 Lakhs
• Location Suitability: Urban / semi-urban / rural
• Profit Potential: Moderate to high with scalable batch sizes

17. YouTube Channel Focused on Odisha Culture & Food

Make videos on YouTube that highlight Odisha’s culture, dishes and traditions. Choose advertising, sponsorship and trading of your merchandise as business models. Minimal investment is needed for this digital business to start in Odisha, but it will grow fast if it keeps the quality up and involves the community.

• Estimated Investment: ₹1–3 Lakhs
• Location Suitability: Urban / semi-urban (content creation flexible)
• Profit Potential: Moderate to high, depending on audience growth

Government Schemes & Support for Odisha Entrepreneurs

If you want to start a business in Odisha, you can find support from the government. The state is helping to grow its entrepreneurial ecosystem through applicable schemes and immediate assistance. The Odisha Startup Scheme, through the Startup Odisha initiative, helps founders by giving them monthly funds, providing money for product development funds and allowing access to co-working centres.

Setting up a business legally is now much simpler, too. With Udyam registration, a trade license from your local body, and GST registration, you get access to formal credit, government tenders, and financial incentives faster than ever.

Do You Need Money to Launch Your Business? 

PMEGP (Prime Minister’s Employment Generation Programme) and Mudra Yojana allow new businesspeople to take out loans with little or no collateral. Such schemes are meant for MSMEs and help you overcome traditional difficulties.

The Odisha MSME support network is a great opportunity that you can explore. It helps your business grow and expand in Odisha. Interest subsidies, marketing help, and technology upgrades are among the state-level schemes offered to businesses.

Tips to Succeed with a Small Business in Odisha

If you are interested in knowing how to start a business in Odisha and help it succeed, here are some tips for small business success to help you grow locally:

• Understand the Highest Demand in the Area: Different regions in Odisha require different products at different times of year. Adjust your products and sales to suit the locals and their most common shopping times.
• Employ Marketing Strategies Online and Offline: Use WhatsApp to broadcast, include the Odia language on your Facebook page, and spread the word locally among people. If you use a hybrid marketing model, you can keep your company recognisable and believable.
• Team up with SHGs and Cooperatives: In rural areas, Self-Help Groups provide members with a reliable network, hands-on service, and a simple route to local markets where they can sell food, crafts, and agricultural products.
• Adoption of Digital Payments is Wise: Digital payment systems allow customers to make payments using UPI, QR codes, and mobile wallets. They help build trust between the business and its customers and ensure proper organisation.
• Use Online Marketplaces: No matter the product or service you offer, your online presence can help you reach customers from far and wide, which is great for taking your business to the next level.

Conclusion

Odisha is rich in natural resources and has growing industrial parks and unexplored business prospects. Due to a growing environment for micro, small, and medium enterprises, the state encourages business owners to act locally. You can start a business in Odisha with small steps but then grow into a successful and profitable venture.

Need a loan for business in Odisha? FlexiLoans offers fast and collateral-free business loans across India so that you can get started without the paperwork hassle. Let 2025 be the year you take that leap.

FAQ Section for Opening a Business in Odisha

Q.1 Which is the best small business to start in Odisha?

Ans: It depends on your area of interest and skills. Many tribal and rural areas find that organic vegetable and mushroom farming is effective. Identify what the local market needs and use Odisha’s beneficial MSME system.

Q.2 Can I start a business with ₹1 lakh in Odisha?

Ans: Yes, absolutely. In Odisha, businesses such as tuition centres or mobile recharge shops can start for under ₹1 lakh. Start with a small business, reuse your earnings to expand, and take on new growth only as clients want your products.

Q.3 Are there government grants for businesses in Odisha?

Ans: Yes. Schemes like Startup Odisha, PMEGP, Mudra Yojana, and Odisha MSME support programs offer grants, subsidies, and collateral-free loans for businesses. You can also register through Udyam for added benefits and formal recognition.

Q.4 How to start a business in a rural area in Odisha?

Ans: Determine the needs in your community, find a business that matches (consider fish farming or pickle making, for instance) and collaborate with SHGs.