In today's world, every young person wants to stand on their own two feet, but the fear of a large investment often hinders their dreams. To ease this challenge, the Modi government's "Startup India" and "Mudra Yojana" are no less than a boon. With an initial savings of just ₹15,000, you can start a timeless business that's in demand in every household and farm, from cities to villages. Not only is it a low-risk business, but the government also provides training and loans at very low interest rates.

What is this magical business?

We're talking about the small steel and iron tool and cutlery manufacturing business. This is a business whose products are a part of everyone's everyday life. You can manufacture three main types of items: cutlery, including spoons, forks, and knives; hand tools such as pliers, hammers, and screwdrivers; and small agricultural implements such as hoes and sickles.

The uniqueness of these tools is that their demand is never-ending. Whether it's the kitchen, garage, factory, or farm, these tools are needed everywhere. This is why you'll never run out of customers in this business.

3.3 lakh rupees project: Government will support

The total project cost for starting this business on a small scale is approximately ₹3.3 lakh. Don't worry, you don't have to pay this entire amount out of your own pocket. Under the government's startup policy, you can take a large portion of this amount as a loan. Machinery and setup cost approximately ₹1.8 lakh, including equipment like a welding machine, drilling machine, buffing motor, and grinder.

The remaining ₹1.5 lakh is earmarked for raw materials. You'll only need to invest ₹15,000 to ₹20,000 as your initial capital. With this small investment, you can produce approximately 40,000 cutlery items and thousands of hand tools each month.

Earnings and profits

The profit potential in this business is quite attractive. According to the project report, if you manage production properly, your monthly sales can reach approximately ₹1.10 lakh. After deducting production expenses like raw materials, electricity, and labor, you will have a gross profit of approximately ₹18,000.

When you subtract your loan EMI (approximately ₹2,340) and other miscellaneous expenses from this profit, you'll have a net profit of ₹14,500 to ₹15,000. This is a significant return on your ₹15,000 investment from the first month. As your market presence strengthens, you can double or even triple your earnings by increasing production.

How to apply for a loan?

If you want to embark on this journey, the Pradhan Mantri Mudra Yojana (PMMY) is a great help. You can apply for a loan for this business by visiting any government or private bank. You will need your Aadhaar card, proof of residence, and a basic business plan (project report). The government not only provides funding but also provides training in operating these machines through Skill Development Centers.