12 Best Businesses to Start in Uttarakhand 2024 ✓ The Best Ones

Best Businesses to Start in Uttarakhand

Uttarakhand, nestled in the foothills of the Himalayas, is a state with immense potential for economic growth and entrepreneurship. The state has a GDP of over Rs 2.9 lakh crore and has been experiencing rapid urbanization with a growth rate of 4%.

However, challenges like lack of technical knowledge, market linkages, and access to finance persist, especially in rural areas.

Promoting local entrepreneurship and business ideas can thus provide sustainable livelihoods and boost the economy.

This article explores the 12 most promising and viable businesses to start in Uttarakhand.

Uttarakhand Business Environment Overview

Uttarakhand, the second fastest-growing state in India, boasts a robust and diverse economy. The Gross State Domestic Product (GSDP) for 2023-24 is projected to be Rs 3.33 lakh crore, marking a growth of 10% over the previous year. The state's per capita income stands at ₹261,673 (US$3,300) for 2022-23, ranking it 6th in the country.

The economy is primarily driven by sectors such as agriculture, industry, and services, contributing 10%, 52%, and 38% respectively to the GSDP. The state has seen significant Foreign Direct Investment (FDI) inflows, with a record high of 7,615.000 INR million in September 2021.

Uttarakhand's industrial policies have fostered a conducive environment for business growth. The state has successfully developed three Integrated Industrial Estates (IIEs) at Haridwar, Pantnagar, and Sitarganj, and has seen prospective development in IT, ITES, biotechnology, pharmaceuticals, and automobile industries.

In terms of expenditure, the state has allocated significant resources towards education (16.6%), health (6.7%), and agriculture (7.6%). These investments reflect the state's commitment to human development and sustainable growth.

Best 12 Business Ideas for Entrepreneurs in Uttarakhand

Let's explore the top 12 business opportunities that hold great potential in Uttarakhand.

1. Agri-business

Uttarakhand, with its diverse agro-climatic zones and traditional farming methods, offers a fertile ground for agri-business. The state is a leading player in organic farming, with 23% of its total land officially certified for organic farming. The Uttarakhand government is committed to increasing this percentage, aiming to become a fully organic state in the next five years.

To start an agri-business in Uttarakhand, one can focus on organic farming of major crops like rice, wheat, sugarcane, maize, soybeans, pulses, oilseeds, and various fruits and vegetables. The Uttarakhand Organic Commodity Board (UOCB) supports farmers with the promotion and marketing of organic crop products.


  • High demand for safe and healthy food
  • Government support through the UOCB
  • Potential for higher profits with organic crops


  • Organic farming requires specific knowledge and skills
  • Transitioning to organic farming can be a lengthy process

2. Tourism

Tourism is a significant contributor to Uttarakhand's economy, with the number of tourists consistently increasing over the years. The state's natural beauty, religious significance, and adventure tourism opportunities make it a popular destination.

To start a tourism business, one can focus on adventure tourism activities like camping, trekking, bungee jumping, bird watching, paragliding, and water sports. There's also potential in rural tourism, health & wellness, and cultural tourism.


  • High tourist footfall
  • Diverse tourism opportunities
  • Government support for tourism development


  • Seasonality of tourism
  • Infrastructure challenges in hill areas
  • Environmental impact of tourism

3. Horticulture & Floriculture

Uttarakhand's diverse agro-geo climate conditions make it an ideal location for horticulture and floriculture. The state currently produces 850 metric tonnes of flowers with 750 hectares of land under cultivation. The government has been promoting protected cultivation of vegetables and flowers, which has proven to be a highly profitable enterprise.

To start a horticulture or floriculture business, one needs to secure a piece of land suitable for cultivation, acquire the necessary farming equipment, and source high-quality seeds. It's also important to have a good understanding of the local climate and soil conditions to select the most suitable crops.


  • High profitability due to the demand for fresh produce and flowers
  • Government support and initiatives to promote the sector


  • The lack of an effective marketing infrastructure can limit profitability
  • The high cost of acquiring high yielding seeds, fertilizers, insecticides, pesticides etc

4. IT and ITES

The IT and ITES sector in Uttarakhand has been given significant attention by the government, with the sector being given the status of an industry. The government has developed well-integrated industrial estates, IT parks, and growth centers in easily accessible regions, including Haridwar, Pant Nagar, and Dehradun.

To start an IT or ITES business, one can focus on areas like Management Information Systems (MIS), which has created many job opportunities in cities like Kashipur and Dehradun. There's also potential in developing ICT solutions for sectors like tourism and agriculture.


  • Growing awareness and adoption of technology
  • The government's industrial policies cater specifically to the needs of the IT sector, providing a supportive environment for growth
  • The state boasts a large talent pool, particularly in IT, programming, web, and app development
  • Outsourcing to India, including Uttarakhand, can result in significant cost savings.


  • Data privacy can be a concern when outsourcing IT projects
  • Need for continuous technological upgradation

5. Renewable Energy

Uttarakhand's abundant water resources make it an ideal location for harnessing hydro-power, contributing to the renewable energy sector. The state government encourages private-sector participation in the development of infrastructure projects, including renewable energy.


  • Uttarakhand's geographical location and natural resources make it an ideal location for renewable energy generation
  • The state government encourages private-sector participation in the development of infrastructure projects, including renewable energy


  • The state's dependence on hydropower could be a disadvantage in times of drought or other water shortages
  • The infrastructure for renewable energy generation may require significant investment and maintenance

6. Manufacturing

Uttarakhand is home to various manufacturing units, including those of major companies like TATA, Bajaj, Hero Honda, and Nestle. The state governments in north India offer benefits like tax holidays, exemption from excise duties, and land at cheap prices, making it an attractive destination for manufacturing companies.


  • The state government's industrial policies provide a supportive environment for the growth of the manufacturing sector
  • The state offers a wide range of benefits in terms of interest incentives, financial assistance, subsidies, and concessions
  • Uttarakhand has a robust social and industrial infrastructure, with excellent connectivity


  • The manufacturing sector may face challenges related to labor costs and availability
  • There may be regulatory hurdles and compliance issues that could impact the ease of doing business

7. Handicrafts & Handlooms

The handicraft and handloom sector in Uttarakhand is a significant source of employment and a sustainable livelihood option. This sector is labor-intensive and capital-saving, making it an ideal business for entrepreneurs with limited capital.

Starting a handicraft and handloom business requires skills in crafting and weaving. Entrepreneurs can either learn these skills themselves or hire skilled artisans. It's also important to understand the market demand and create products that cater to this demand.


  • Provides employment and sustainable livelihood
  • Low capital requirement and high labor intensity


  • The sector faces challenges such as lack of access to markets and modern technology
  • The supply chain can be complex and difficult to manage

8. Honey Production

Honey production is a growing industry in Uttarakhand, with the potential for high profits. Honey bee contract farming, where farmers rear bees and produce honey according to companies’ specifications, is becoming increasingly popular.

Starting a honey production business requires knowledge of beekeeping techniques and the acquisition of bee colonies. Entrepreneurs can also consider entering into a contract farming agreement with a company, which can provide the necessary inputs and buy the output at a predetermined price.


  • High profitability due to increasing global demand for honey
  • Government support, such as exemption of honey from excise duty and reduced GST on honey


  • The farmer has no control over the price or quality of the honey in contract farming
  • The company may terminate the agreement at any time without prior notice

9. Pharmaceutical Manufacturing

Uttarakhand is a rapidly growing hub for the pharmaceutical industry, with around 60 small pharmaceutical companies located near Dehradun. Many companies have set up their plants in Uttarakhand to avail of excise duty benefits, which ended in March 2010.

To start a pharmaceutical manufacturing business in Uttarakhand, entrepreneurs need to register their business, obtain necessary licenses, and comply with the regulatory mechanisms. The state government has also established the Pharma City in Selaqui near Dehradun and provided tax exemptions to integrated industrial estates established at Haridwar and Pantnagar.


  • Rapid growth and development in the sector
  • Government incentives and support


  • Expiry of tax benefit period could pose challenges
  • Intense competition, especially for new entrants

10. Eco-friendly Transportation

Uttarakhand is making strides towards promoting eco-friendly transportation systems. The state launched its first eco-friendly transportation mobile application, ‘Green Rabbit', which aims to make commuting easier for the public within the city at an economical price. . The application offers a fleet of e-rickshaws, e-bikes, cabs, taxis, or auto rickshaws

To start an eco-friendly transportation business in Uttarakhand, entrepreneurs can consider developing similar mobile applications or investing in eco-friendly vehicles. They can also explore opportunities in eco-tourism, which is a growing sector in the state.


  • Support for eco-friendly initiatives
  • Potential for growth in eco-tourism


  • Infrastructure challenges, such as proper road networks
  • Potential competition from existing services like ‘Green Rabbit'

11. Healthcare Services

Uttarakhand has been proactive in addressing the state's health infrastructure needs. The state government has launched several healthcare schemes, such as the Atal Ayushman Uttarakhand Yojana (AAUY), which provides health insurance coverage of Rs. 5 lakh per annum to resident families.

To start a healthcare service in Uttarakhand, entrepreneurs can consider setting up clinics or hospitals, especially in remote areas. They can also explore opportunities in yoga and naturopathy, given the state's reputation as a hub for these practices.


  • Government support for healthcare initiatives
  • High demand for healthcare services, especially in remote areas


  • Potential challenges in setting up infrastructure in remote areas
  • Regulatory requirements and licensing for healthcare services

12. Wellness Tourism in Uttarakhand: Yoga and Naturopathy

Uttarakhand, with its serene environment and spiritual heritage, is a popular destination for wellness seekers. Establishing a yoga retreat center and Naturopathy centers in this region can be a lucrative business opportunity. These centers can offer yoga, meditation, spa treatments, and Ayurvedic therapies, providing a haven for holistic healing and self-discovery.


  • High-profit margins for premium packages
  • Growing interest in natural and holistic healing methods
  • Uttarakhand's rich biodiversity and traditional knowledge of Ayurveda


  • Initial investment in facilities and instructors.
  • Seasonal fluctuations in attendance

Support for Entrepreneurs in Uttarakhand

Uttarakhand offers a robust ecosystem for entrepreneurs, with government incentives and schemes such as the Uttarakhand Startup Policy 2018, which provides monthly allowances and marketing assistance to startups. The state also has a strong infrastructure, with excellent road connectivity, two domestic airports, and a vast network of rail routes.

The state's abundant natural resources and proximity to the national capital provide a favorable environment for businesses. The state's electricity infrastructure is robust, with a total installed power generation capacity of 4,203.38 MW as of April 2023.

Uttarakhand also has a thriving mentoring, training, and incubation ecosystem. The state government has formed a CM advisory group on startups innovation and entrepreneurship, which includes pioneers in the startup ecosystem. Partnerships have been established with organizations such as Google and Amazon to support the local startup ecosystem.

Moreover, the state is home to several incubators that nurture early-stage startups, providing mentoring and coworking spaces. The Uttarakhand Policy for Skill Development and Entrepreneurship, launched in 2018, aims to increase the employability of workers and the competitiveness of enterprises.

Top FAQs on 12 Best Businesses to Start in Uttarakhand

How can I start a business in Uttarakhand?

Research the market, choose a suitable business idea, create a business plan, secure necessary permits and licenses, and invest in infrastructure and resources.

What government incentives are available for startups in Uttarakhand?

The Uttarakhand Startup Policy 2018 offers incentives such as monthly allowances, marketing assistance, tax benefits, and support for incubation and mentoring.

What are the challenges faced by businesses in Uttarakhand?

Challenges include seasonality, infrastructure limitations, access to markets, and regulatory hurdles.

Are there any successful startups in Uttarakhand?

Yes, there are several successful startups in Uttarakhand, including Suraitech Innovations, ChloroHemp Agrotech, Himbuds Vatika, Lagom Innovations, and TrueHAB.

How can I get support for my startup in Uttarakhand?

The Uttarakhand government offers support through its Startup Policy, incubation centers, mentoring programs, and financial assistance schemes.

How does the weather in Uttarakhand benefit businesses?

The diverse weather conditions in Uttarakhand are ideal for businesses like agri-business, horticulture, and floriculture.

What is the customer response to businesses in Uttarakhand?

The customer response is generally positive, with a growing demand for organic products, handicrafts, and wellness tourism.


In conclusion, Uttarakhand, with its rich natural resources and cultural heritage, offers a fertile ground for diverse entrepreneurial opportunities. From agri-business to wellness tourism, the state presents a promising landscape for those looking to start a business. However, it's important to remember that while the potential for success is high, challenges such as seasonality and initial investments may exist.

So, how will you leverage these business ideas in Uttarakhand to create a profitable venture? And what steps will you take to overcome potential challenges in starting a business in Uttarakhand? 

Looking to set up a business elsewhere? Here are the ideas 👇

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