Business Description

Introduction to Jute Bag Manufacturing Business

The jute bag manufacturing business in India is a rapidly growing eco-friendly industry that offers high profit potential, strong market demand, and long-term sustainability. With increasing awareness about plastic pollution and environmental protection, jute bags are replacing plastic and non-biodegradable packaging solutions across retail, fashion, grocery, agriculture, and corporate sectors.

Jute, also known as the golden fiber, is 100% biodegradable, recyclable, durable, and eco-friendly, making jute bags a preferred choice for shopping, packaging, branding, and gifting purposes. Government bans on plastic bags, export opportunities, and corporate demand have further fueled the growth of this industry.

If you are looking for a low-risk, scalable, and future-proof manufacturing business, starting a jute bag manufacturing unit can be a highly profitable venture.

Business Overview – Jute Bag Manufacturing

Why Start Jute Bag Manufacturing Business?

1. Growing Eco-Friendly Market

With plastic bans across India and global sustainability initiatives, demand for biodegradable alternatives like jute bags is increasing every year.

2. High Export Demand

Jute bags have strong export demand in Europe, USA, Australia, Japan, and Middle East countries, making it a profitable export-oriented business.

3. Low Raw Material Cost

Jute is easily available in India, especially in West Bengal, Assam, Bihar, and Odisha, keeping raw material costs low.

4. Government Support

Subsidies, MSME schemes, and financial assistance are available for jute-based manufacturing units.

5. Multiple Product Categories

You can manufacture:

• Shopping bags

• Grocery bags

• Promotional bags

• Gift bags

• Wine bottle bags

• Designer fashion jute bags

Market Demand & Growth Potential

The Indian jute bag market is growing at 12%–15% CAGR, driven by:

• Ban on single-use plastic

• Growth of eco-conscious consumers

• Retail industry expansion

• E-commerce packaging needs

• Corporate gifting demand

Key Demand Sectors:

• Retail shops

• Supermarkets

• Fashion brands

• Hotels & resorts

• Corporate gifting companies

• Export traders

Investment Breakdown – Jute Bag Manufacturing Unit (₹5–10 Lakhs)

Machinery & Equipment Required

• Jute fabric cutting machine

• Industrial sewing machines

• Printing machine (optional)

• Eyelet punching machine

• Quality checking table

• Packaging machine

Raw Materials Required

• Jute fabric

• Cotton or polyester thread

• Handles (cotton / jute / bamboo)

• Printing ink

• Packing material

Manufacturing Process of Jute Bags

1. Raw Jute Fabric Procurement

2. Cutting as per bag design

3. Stitching and assembling

4. Printing / branding (if required)

5. Quality inspection

6. Final packaging & dispatch

Licenses & Legal Requirements

Mandatory:

• GST Registration

Optional / Recommended:

• Udyam MSME Registration

• Trade License from local authority

• Pollution Control NOC (for large units)

• Import Export Code (IEC) – for exports

Location Requirement & Factory Setup

• Minimum 500 – 1500 sq. ft. space

• Located in industrial or semi-industrial zones

• Easy transport connectivity

• Proper ventilation and power supply

Manpower Requirement

Profit Margin & Income Potential

Profit Margin:

• 25% – 40% per order

Monthly Income Example:

Marketing Strategy for Jute Bag Business

Online Marketing:

• Business website

• IndiaMART, TradeIndia, ExportersIndia

• Amazon, Flipkart, Meesho

• Social media marketing

Offline Marketing:

• Retail tie-ups

• Corporate gift suppliers

• Exhibitions & trade fairs

• Local distributors

Export Opportunities in Jute Bag Manufacturing

Top importing countries:

• USA

• UK

• Germany

• France

• Australia

• UAE

Export Profit:

• 50% – 100% higher margins than domestic sales

Government Subsidy & Loan Schemes

• MSME Subsidy Scheme

• PMEGP Loan Subsidy

• Mudra Loan

• CGTMSE Business Loan

Advantages of Jute Bag Manufacturing Business

• Eco-friendly & future-proof

• High export demand

• Low competition in premium category

• Scalable production

• Strong profit margins

Challenges & Solutions

Future Scope of Jute Bag Business

• Designer jute bags

• Branded retail packaging

• Eco luxury gifting

• Custom corporate branding

Final Conclusion

The jute bag manufacturing business in India is one of the best eco-friendly manufacturing business opportunities in 2026. With low investment, strong market demand, export potential, and high profit margins, this business is ideal for startups, MSMEs, and entrepreneurs seeking sustainable income and long-term growth.

If planned strategically with quality production, branding, and smart marketing, a jute bag manufacturing unit can become a highly successful and scalable enterprise.