15 Best Passive Income Ideas In India in 2023

Are you trying to find passive income ideas in India for some extra cash?

Or maybe you are looking for something to provide extra security during uncertain times?

Well, whatever your financial situation is, passive income can be an ideal source of steady earnings.

Passive income is income that requires little to no effort to maintain and can be generated from sources such as investments, rental properties, and online businesses. 

It provides an excellent way to help with retirement savings goals or other financial objectives.

In this article, we will explore the Top 15 passive income ideas in India in 2023.

Top 15 Passive Income Ideas in India (Choose The Best And Stop Worrying For The Rest)

So, are you looking to generate passive income? Here are 15 lucrative passive income ideas in India that can help you build a sustainable stream of income without actively trading your time for money.

1. Invest in Green Assets

Investing in green assets is one of the most lucrative passive income ideas in India. It encourages sustainability. Green assets provide passive income investors with reliable cash flows through long-term contracts or leases. 

As environmental concerns grow, green investments may also improve in value, providing capital appreciation and income.

There are many green assets, but here are some popular green assets that you can consider investing in:

• Renewable Energy Projects (e.g. solar, wind, hydropower)
• Sustainable Real Estate (e.g. green buildings, eco-friendly properties)
• Green Bonds (bonds issued by entities committed to environmentally-friendly projects)
• Sustainable Agriculture (e.g. organic farming, sustainable forestry)
• Electric Vehicle (EV) Infrastructure (e.g. charging stations, battery technology)

With SustVest you can invest in green assets and generate monthly income. For investment opportunities check out the upcoming projects here.

Check out our blog on Investing in Renewable Energy- Best Investment Opportunity in India here.

2. Affiliate Marketing

Affiliate marketing is an excellent approach to earning passive income. It allows you to advertise a company’s goods and services on your website, blog, or social media.

You get a commission when customers use your referral link. It requires a website, appealing content, and traffic.

It can be a lucrative way to earn passive income by leveraging your online presence to promote products or services of others and earn commissions on successful sales.

3. Sell Photography Online

Selling photography online can be a profitable passive income idea. 

By uploading your high-quality photos to stock photography websites, you can earn royalties each time customers download your photos for various purposes, such as websites, advertisements, and more.

It requires upfront effort to create and upload your photos, but once they are online, they can generate passive income for you over time.

4. Dividend Paying Stocks

Dividend-paying stocks are a part of popular passive income ideas in India for investors. Dividend-paying stocks are shares of a corporation that pays out a percentage of its profits to shareholders.

Investors get these dividends quarterly or yearly, giving a consistent income. Dividend-paying equities can provide passive income and capital appreciation. 

However, financial health, dividend history, and market circumstances must be considered when choosing dividend stocks.

5. Create an App

Creating a mobile app has great potential for earning passive income. Mobile apps for entertainment, productivity, and utility are in great demand due to smartphone use.

A well-designed and useful application on popular app stores can generate passive income via in-app sales, subscription fees, or advertising.

However, it’s important to conduct market research, plan for updates and maintenance, and promote the app effectively to maximise its earning potential.

6. Real Estate Investment Trust

Real Estate Investment Trusts (REITs) are investment vehicles that hold and manage income-generating properties, including commercial buildings, residential complexes, and hotels.

REITs are popular with passive income investors because they must release a large amount of their taxable revenue as dividends.

REITs allow investors to invest in real estate without the headache. They can provide passive income, capital appreciation, and diversity for investors wishing to diversify their portfolios and produce revenue from real estate without actively managing properties.

7. Bonds

Bonds are a common passive income method that includes lending money to an issuer for interest payments. As a lender, you receive interest in your investment without actively managing it.

Bonds come in many forms, like Treasury bonds, business bonds, and local bonds. Different levels of government, firms, or municipalities can issue all these bonds.

They feature a set interest rate and a lower risk than equities, making them safe investments. For investors seeking safety and predictability, bonds can provide passive income.

8. Create a Blog or YouTube Channel

A blog or YouTube channel can provide to be one of the top passive income ideas in India. By sharing your specialised market expertise, you can develop an engaged audience and monetise your content through advertising, sponsored articles, affiliate marketing, and more.

With great content and regular work, your blog or YouTube channel can make money even while you’re not actively engaged in it. It lets you use your creativity and knowledge to earn passive money for years.

9. Drop Shipping

Drop shipping is a popular and successful form of e-commerce that lets you sell things online without inventory or shipping.

You profit by selling things at a greater price than the provider. It’s a terrific passive income option for individuals starting an internet business with little cost and work because you don’t have to invest in inventory.

involve drop shipping setting up an online store, marketing items from suppliers, and having the supplier ship the product straight to customers.

10. Create Courses

Sharing your skills and experience through online courses can serve as a great passive income option. E-learning platforms make creating and selling courses on business, finance, health, technology, and more easier than ever.

Once you post your course, students may enroll and learn at their own speed, earning you cash eternally. All you need is a passion for teaching, a technical ability to design course content, and a platform to host and sell your course.

It’s a terrific opportunity to monetise your skills and hobbies while helping learners worldwide.

11. Storage Rentals

Renting out space for storage to individuals or businesses is a common way to bring in extra cash on the side.

Once set up, this revenue stream involves no work, whether it’s a garage, self-storage facility, or spare room. It’s a good choice for hands-off investors because it pays out monthly without management.

With the increasing demand for storage space, it’s one of the viable passive income ideas in India with the potential for long-term profitability.

12. Cryptocurrency

Cryptocurrency, a digital currency, is one of the trendy passive income ideas in India. Investing in cryptocurrencies like Bitcoin, Ethereum, and others may produce passive income through staking, lending, and yield farming due to blockchain technology and mainstream financial adoption.

You can gain interest or rewards for keeping and participating in the network by staking or lending your cryptocurrency. Yield farming involves providing liquidity to decentralised finance (DeFi) platforms in exchange for earning fees or tokens.

13. Rent Properties

Renting property is one of the tried-and-true passive income ideas in India. Owning real estate and renting it out can offer a stable income without a job.

Renting properties, whether they’re residential, commercial, or holiday rentals, may give a steady income with no upkeep. If property values rise and you can leverage your holdings, it may be a lucrative investment plan.

With careful management and strategic property selection, renting properties can be a lucrative option for building wealth and achieving financial independence.

14. Freelancing

Freelancing is a popular technique to get passive money from your skills. You can freelance writing, graphic design, programming, consulting, and more.

After building a customer base and process, you may earn passively by taking up tasks that match your abilities and interests.

Online platforms that link freelancers with customers worldwide make it simpler than ever to discover freelance work and build a stable income without actively seeking clients.

Freelancing offers flexibility, independence, and the possibility for considerable profits, making it the ideal choice for passive income. Freelancing has proved to be one of the best passive income ideas in India for students looking to pocket some extra cash.

15. Real Estate

If you are looking for a reliable and proven strategy to build passive income, real estate is a great choice. You can generate passive income by investing in rental homes, flats, or commercial buildings. 

Real estate investments can appreciate over time, providing potential capital gains, and can also offer tax advantages through depreciation deductions.

Additionally, you can boost the profitability of your assets by leveraging leverage in the form of mortgages and other forms of finance. For investors seeking long-term prosperity, real estate could offer to be one of the most reliable passive income ideas in India for people with more funds to spare.

Check out our article on 7 Best Investment Options in India for more investment ideas.

FAQs: 15 Best Passive Income Ideas In India 2023

How to earn passive income in India- a different strategy?

1. Gaming: Explore game streaming, game development, or e-sports tournaments for income.
2. Social Media Influencing: Generate income through affiliate marketing, sponsored posts, and YouTube ads.
3. Invest in Small Business: Consider angel investing, peer-to-peer lending, or franchising for passive income opportunities.

Do I need a lot of money to start generating passive income?

Not necessarily. While some passive income ideas like real estate investments may require significant capital upfront, there are other options like affiliate marketing or creating digital products that can be started with minimal investment.

Are passive income ideas risk-free?

No, investment is not completely risk-free. Each passive income idea in India comes with its own set of risks, such as market fluctuations, inflation, or business risks. It’s important to assess and manage risks before investing carefully.

Do I need specialised skills or expertise to generate passive income?

Basically depends on passive income. Dividend stocks and bonds demand financial literacy and market understanding. However, rental properties and peer-to-peer financing are viable options with basic understanding and investigation.

Can I generate passive income while still working a full-time job?

Yes, many passive income ideas in India are designed to be flexible and can be pursued alongside a full-time job. However, it may require time management and dedication to build and manage passive income streams while balancing other commitments.

Final Thoughts

Creating multiple streams of passive income can be a key strategy for building long-term wealth and achieving financial freedom. 

The top 15 passive income idea in India mentioned in this article offer a variety of opportunities for generating income with minimal effort once set up.

Green assets, Real estate, freelancing, and digital product creation are all effective ways to diversify income. Let’s say you’re interested in investing in Green. To start your journey in sustainable investing, contact us at SustVest today!