50 Passive Income Ideas in India to Earn Extra Money

Every person wishes to earn a good amount of income to lead a good life. But have you ever thought of earning money even when you sleep? Well, yes, that is possible. It is through the concept of passive income. This allows you to gain financial freedom and support your overall income target. And the best part? You can start earning with very low to no investment as well.

But the question is, what are the best passive income ideas to try? Well, there is no doubt that with so many ideas, finding the most suited ones is hard. Hence, we have curated a complete list of top passive income ideas in India.

So, let us start with what is passive income and then further explore the top 50 passive income ideas here. 

What is Passive Income?

The concept of passive income is quite simple. It involves earning from sources without actively working for it daily. It comes from sources where you’ve invested time, money, or effort once. Once set up, these sources continue to generate income on a regular basis.

The most common passive income examples are investments, businesses, digital products, royalties, and even rent.

This income is not earned by working at office time or business hours, so no restrictions. Once you set it up properly, you will earn from it automatically. This way, you can earn financial freedom. This process takes time to complete and is fruitful in the long run.

Now that we’ve understood the meaning, let’s take a look at some of the primary features of passive income that you should know about, which are as follows:

• Minimal Effort Required: Passive income streams typically require little to no ongoing effort once they are established. This allows individuals to earn money without actively working for it on a daily basis.

• Financial Independence: Passive income can contribute to achieving financial independence and early retirement by providing a steady income without the need for active employment.

• Diversification of Income: Passive income allows you to earn from multiple sources and can reduce reliance on a single income stream. This diversification helps mitigate financial risks and improve in overall financial stability.

• Tax Implications: Passive income is often taxed differently than active income, and tax laws can vary by jurisdiction. It's important to understand how passive income is taxed in your region to optimize financial planning.

• Initial Setup: Passive income requires minimal ongoing effort. But when you start, it often requires significant upfront work or investment to establish. This could involve setting up a business, creating a product, or investing in assets.

• Variety of Sources: Now, it is important to note that passive income sources in India are many. The common ones are:

  • Investments: Mutual funds, stocks, bonds, and others are part of it.

  • Business Ventures: Investing in businesses where you do not materially participate.

  • Digital Products: Selling online courses, ebooks, or affiliate marketing.

  • Rentals: Income from renting properties or equipment.

• Potential for Long-Term Income: Some passive income streams, like real estate or intellectual property, can generate income over long periods, even across generations.

• Risk and Return: Passive income streams vary in terms of risk and potential return. For example, high-yield savings accounts are generally low-risk but offer lower returns compared to investments like stocks or real estate.

Overall, passive income offers a way to build wealth and achieve financial goals with less ongoing effort, but it often requires careful planning and initial investment.

Difference Between Active Income and Passive Income

Before we explore the ideas, it is important to know the difference between active income and passive income. Now, both sources help you earn money, but the nature and way are different. So, here is a quick difference between the two:

Till now, you have explored all the basic details linked to passive income meaning. Now, let us move ahead to find the answer to how to make passive income in India.

50 Passive Income Ideas in India

There are various passive income sources in India. Not all the sources provide sustainable earnings; only a few sources offer the potential to earn substantial income and generate wealth in the process.

Here, we list the top 50 passive income ideas you can opt for in 2025. Starting from the basic financial ideas to the digital ones, we have listed a wide category of options for you here. You can either work with one idea or go ahead with multiple options, whichever suits your needs.

So, let us get started with the passive income ideas in India.

1. Investing in Stocks 

If you are looking for a versatile passive income example, then it is stocks. These offer you a high potential earning. The investment requirement is moderate, allowing you to start with just a few thousand. There is capital appreciation as well, but a certain amount of risk is involved, too. Also, you can invest in dividend stocks that pay you a regular income and earn realized profits from those investments.

2. Investing in Mutual Funds

If you are looking for income from professionally managed sources, then this is the best choice. This will allow you to earn by investing in debt, equity, or hybrid funds. There are specific mutual funds that distribute profits, and the income is directly deposited into your account in the form of dividends. This is diversified in nature, which helps you to mitigate risks while seeking returns. You can start investing in Mutual Funds through the Rupeezy App to start your investment journey.

3. Earn from FD or RD

If you are seeking some traditional way to earn passive income in India, this is great. It is safe and offers you a consistent monthly income in the form of interest. These are low-risk in nature and are best for conservative investors seeking stable income without market volatility. You can make early withdrawals as well, but it can attract some penalty.

4. Become a Mutual Fund Distributor (MFD)

If you become a Mutual Fund Distributor (MFD), your role will be to bring in investments to mutual fund houses. In return, you’ll earn commissions based on the total amount of investments you generate. These commissions are paid annually, and the more investments you bring in, the higher your earnings. The best part? You can do this in your free time, making it a great opportunity for passive income. If you're interested in MFD, explore the Rupeezy platform to know more.

5. Investing in Real Estate

There are two options in it. Buying property and renting it or buying it for capital appreciation. You can rent or lease out residential or commercial spaces for consistent monthly cash flow. Just ensure that you manage your tenant contracts properly. Real estate also offers long-term value growth, making it a reliable passive income source.

6. Peer-to-Peer Lending

Peer-to-peer (P2P) lending platforms connect lenders directly with borrowers, allowing you to earn interest on loans. This method provides higher returns than traditional savings accounts but involves moderate risk due to borrower defaults. Diversifying it among various lenders reduces your risk and ensures a stable flow of passive income.

7. Sell Online Courses

Create and sell online courses on platforms like Teachable or Udemy. Share your expertise on topics such as coding, painting, or fitness. Once you are done, these courses will help you earn recurring income with minimal effort. Marketing through social media or email newsletters can help attract students.

8. Affiliate Marketing

This method allows you to earn commission by sharing affiliate links in various ways. By sharing unique links on platforms like blogs, YouTube, or social media, you can make money whenever someone clicks your link and completes a purchase. Popular affiliate programs include those offered by Amazon and Flipkart, while social media and content platforms help you to promote these links to a wider audience.

9. Start a Blog

This is one of the simplest modes to earn passive income in India. All you need to do is create a website or sign up on platforms like Medium to share your thoughts in written format. You can engage readers and monetize through ads, affiliate links, or sponsored posts. Blogs with evergreen content can generate passive income for years as readers continue to visit your site.

10. YouTube Channel

Have you ever wondered how much these YouTubers earn? Well, once you have a good follower base and reach, you can earn substantial income depending on factors such as content type, size and strategies. You can create videos on anything you wish. Monetize through ads, sponsorships, and memberships. Once uploaded, videos can generate income indefinitely as they gain views over time.

11. Sell Stock Photos

From creating presentations to developing graphics, we need some kind of images. This is where you can earn a good amount of passive income. For this, you can post good images on the websites like Shutterstock or iStock. You earn royalties each time someone downloads your photo, making it ideal for photographers looking to monetize their portfolio.

12. Print-on-Demand Designs

Are you good at design and arts? Well, if yes, this is a great opportunity to earn through your creative insights. Design some creatives on Canva and use these to design merchandise like t-shirts, mugs, or bags. Then, they can be sold via print-on-demand platforms such as Printful or Teespring. The provider handles production and shipping while you earn profit from each sale.

13. Create Digital Templates

Do you know that people still find it hard to create templates? Yes. Be it planner, calender, or even a simple message, it is not easy for people to craft catchy digital templates. Here, if you have design skills, you can create templates for resumes, presentations, or graphic design projects and sell them online on marketplaces like Etsy or Canva.

14. Dropshipping

This is an upcoming passive income source in India. Start an online store without managing inventory. You would need to find partners who can directly ship your orders to the customers. You will be able to see the price of the product. Add the margin you wish to earn and thats it. Add your margin to it, and this way, you will earn. Platforms like Shopify make it easy to set up and automate your store.

15. Create an E-book

Do you have a story to tell? Do you have stories to help professionals? If yes, then this is the best way to earn passive income. You only need to create an e-book for platforms like Amazon Kindle Direct Publishing (KDP). Now, you must select a topic in demand and that you are good at. Once created and launched, you will earn money everytime somebody buys it.

16. Start a Podcast

Podcasts are becoming a popular way to share stories, knowledge, and opinions. If you enjoy speaking or storytelling, start a podcast on topics like career tips, finance, or motivation. Once you build an audience, you can monetize it through sponsorships, ads, or even listener subscriptions on platforms like Spotify or Apple Podcasts.

17. License Your Music

This is a perfect opportunity for musicians. Create original music tracks or background scores and license them on platforms like AudioJungle or Epidemic Sound. Each time someone uses your track, you earn royalties. It’s a great way to monetize your passion for music. And on top of it, you are doing something that you really like, so its a win-win.

18. Sell Voiceovers

Have a good voice and clear speech? Record voiceovers for ads, audiobooks, or explainer videos. Platforms like Fiverr or Voices.com can connect you with clients. Once recorded and delivered, your voice can earn money regularly via licensing.

19. Build an Email Newsletter

We all have experiences to share or information to tell. This is what this idea of passive income is based upon. Here you will create a newsletter that can only be read after paying a small fee.  People will subscribe to it to ensure you have a good and consistent income flow. You can add affiliate links or sponsored content as well. 

20. ATM Installation on Your Property

Many people have empty rooms or garages or extra office space in their houses. If so, then check if you can rent it for ATM installation. This will allow you to earn a good amount of passive income with surety. But make sure it is an external room that will allow people to gain access with ease. 

21. Earn from Online Surveys

This is a passive income idea that will need your involvement to a certain extent. Here you would need to invest some hours daily to complete the surveys. Once done, you will be paid on a per-survey basis, which is a great and easy way to earn some amount. 

22. Reviewing Products

Many platforms pay you to review their products and services. Here, you share your insights on how you feel about the product, and the company can ask to provide private feedback or responses. But make sure to check the company and its services before you start the job, as only a few genuine ones are working in the field. 

23. Sell Canva Designs

Canva recently approved designers to create and upload their designs on the platform to earn from them. All you need to do here is create some amazing designs for CVs, banners, or even cards. Once done, publish them for people to check out. If found apt, they can pay a price to customize and use the same. 

24. Freelancing

This is a growing profession that allows you to not only earn a good amount of money but work on your terms. As a freelancer, you can work as a writer, editor, designer, professional services, developer, or any other work as per your skills. All you need to do is just devote some hours per day to earn a good amount, and it is dependent on the complexity of the work.

25. Develop Apps or Websites 

If you are working in a technical field and know how to develop mobile apps or websites, this can be your gateway to generating passive income. Once you develop it, you can sell it and earn from it. Also, you can offer your service for updating apps at a nominal charge, which will provide you with a good income flow. 

26. Real Estate Crowdfunding

If you are looking for new and upcoming passive income sources in India, then this is the one. If you can invest a large amount of money in development projects, then you can earn from it. Platforms like Grip Invest, Property Share, or Myre Capital make participating easier with as little investment. It’s a hands-off option where professionals handle the property, and you just collect returns. However, the investors need to research or consult a financial advisor to understand the risks involved in it.

27. High Yielding Savings Accounts

Rather than putting your money in a normal savings account, go for those with better and higher interest rates. Some private and small finance banks in India offer rates of up to 7% annually. While the returns aren’t huge, they’re stable and risk-free, and you get liquidity too. Ideal for people who want to earn interest passively without locking in funds like in FDs. However, the investors should carefully assess the bank’s credibility and other terms before depositing.

28. Royalties from Creative Works

The best thing about creating something once is that it can keep earning for years. If you're a writer, musician, or designer, you can earn royalties from your books, songs, or artwork. Platforms like Amazon, Spotify, Shutterstock, and others distribute your work and pay you every time it’s used or sold. It’s passive income that grows as your content reaches more people.

29. Become a Social Media Influencer

Build a niche audience on Instagram, YouTube, or LinkedIn by sharing consistent, engaging content. Once you gain a following, brands will approach you for paid promotions and affiliate partnerships. Old posts and videos continue generating income, making it a scalable passive stream once your profile gains momentum.

30. Sublease a Room 

If you’re renting a house and have unused space, subleasing a room can bring extra monthly income. With landlord approval, rent it out to students or working professionals. This setup offsets your rent or helps you profit. You can do this without needing to own property or handle large responsibilities.

31. Online Coaching or Consulting

Convert your knowledge into recorded coaching sessions and host them on platforms like Teachable or Graphy. Once live, people can enroll anytime, and you earn automatically. It’s great for professionals with skills in marketing, finance, writing, tech or other professions looking for recurring income without ongoing effort.

32. Rent Out Your Vehicle

If you are not using your car or bike regularly, then rent it out to platforms like Zoomcar. By doing so, you will be able to generate income from a vehicle that is sitting idle. The best part of this passive income example is that companies cover most of the expenses. So, there is minimal risk.

33. Start a Niche Job Board

Finding a good job is not easy. It takes time and effort. But if you understand the complexities of job search, then you can start a job board. This paid service will allow the applicants, or rather, your subscribers, to know the top trends and jobs in the market. This way they will be able to apply quicker as compared to the rest. 

34. Launch a Paid Membership Group

This is going to be a game-changer in the passive income examples. This is where you would create a group, make it paid, and, based on the theme of the group, you can share insights and information. It can be on stock research reports, premium news articles, jobs, or anything else you feel suited to. 

35. Sell via WhatsApp

Many people are already doing this to earn passive income in India. You just need to get affiliated with some shop or wholesaler. You will get product images, details, and prices on daily basis. All you need to do is share these images, descriptions, and prices in your whatsapp group. The wholesaler will fulfill any order, and you will earn the difference as a commission. 

36. Sell Notion or Productivity Templates

Notion users are always looking for pre-made dashboards for tasks like budgeting, project tracking, or journaling. Design clean, useful templates and sell them online. Once listed, these templates generate sales on autopilot with minimal updates needed.

37. Rent Out Space for Events or Workshops

Have access to a terrace, studio, or small hall? Rent it out for small events, yoga sessions, or workshops. Event planners are often looking for affordable venues. With a basic setup, you can earn a steady income by leasing the space on weekends or evenings.

38. Purchase and Rent Domain Names

Domain flipping is a proven passive income stream. Buy domains with brand value, trending keywords, or short memorable names. List them on marketplaces and wait for buyers. You can also park domains and earn from ad traffic while they’re unsold, as they are treated as digital assets.

39. Sell Handmade Goods

If you're good at crafts, jewelry, or décor, sell your handmade products on platforms like Etsy or Instagram. Once you set up your product line and shipping process, orders can flow in passively. Create batches, photograph them well, and let your online store do the work.

40. Sell Audio Narrations

Turn your voice into income by recording narrations for audiobooks, explainer videos, or guided meditations. Once recorded, you can license your audio repeatedly on platforms like ACX or Voices.com. With clear quality and niche focus, it becomes a re-usable, passive income asset.

41. Lease Parking Spot

If you live in a busy area and have an extra parking space, lease it to nearby offices or apartment residents. You earn monthly income with no upkeep. In cities with limited parking, this can become a reliable and fully passive income stream.

42. Try Pet-Sitting Services

This isn’t always passive upfront, but you can turn it into one. Here you would need to start by creating a network of trusted people and service providers. You manage bookings via a simple site or app and earn commissions from every booking. Great for animal lovers looking to build a local, passive brand.

43. Go for Gaming

If you love gaming, consider streaming your sessions or uploading walkthroughs. Once your videos are monetized, they can earn from ads over time. You can also create game guides or some assets to sell while in the game. The work is active in the beginning but can lead to passive earnings later.

44. Sell Stock Videos

If you have a knack for videography, shoot high-quality clips of nature, people, or urban scenes. Once created, you can upload them to platforms like Pexel, Shutterstock, and others. Each download earns you money. Great for creators who already shoot content and want to repurpose it into passive income.

45. License Code or Software Scripts

If you’ve written useful code, like calculators, templates, or plugins, license it or sell it on platforms like CodeCanyon. Developers and businesses will buy it for reuse, and you keep earning without extra development.

46. Invest in Warehousing Units

Some platforms allow fractional ownership of warehouses. You earn rent from logistics brands that lease them. Also, as e-commerce increases, the demand for warehouses also rises. It’s commercial real estate without owning large properties.

47. Buy a Billboard Panel in Tier 2/3 Cities

If you have space on your terrace or maybe outside, you can rent it to develop or place a billboard. Ad agencies pay to use it for regional campaigns. After setup, it’s almost fully passive, with seasonal surges in income.

48. Invest in Green Projects via ESG Funds

Invest in verified green energy or sustainability startups via ESG-focused platforms. You earn returns and tax benefits while contributing to cleaner ecosystems. It’s gaining ground in India via small-ticket crowdfunding models.

49. Niche Instagram Page

Build an Instagram page focused on a specific niche, like budget fashion, local eats, or solo travel tips. Once it gains followers, monetize through shoutouts, affiliate links, or paid guides. Old content keeps bringing views, making it a long-term passive income stream after the initial growth phase.

50. Investing in Small Businesses

Find promising local or online businesses that need capital, like a home bakery, digital agency, or car rental setup. Here, you will be a silent partner who will invest for a share of profit. No daily involvement, just performance-based passive returns backed by an agreement.

Conclusion

How to earn passive income in India? Well, with this, you now have the answer to this question. But one of the most important things to remember here is that this is no shortcut to money. Passive income also needs patience and consistency to generate.

Earning a good passive income is only possible when you understand the process. Also, make sure you select an option you are good at. So, be vigilant and analyze all the options accurately to ensure your pick generates income and long-term wealth for you. 

FAQs

Q. What are the top passive income ideas for students?

As a student, you must be looking for simple ways to operate with classes. So, here are the options:

• Affiliate Marketing: Promote products online and earn commissions on sales.

• Professional Gaming: Participate in gaming tournaments or live-stream games.

• Pet-Sitting Services: Care for pets while their owners are away.

• Sell Stock Photos: Upload photos to stock photo websites and earn royalties.

• Creating Digital Products: Develop and sell ebooks, printables, or templates.

• Create an Online Course: Teach a skill through video courses.

• Dropshipping: No need to hold any stock and sell directly through suppliers to earn.

Q. What are some passive income ideas for young adults?

Young adults can consider these passive income strategies:

• Investing in Dividend Stocks: Earn regular dividends from established companies.

• Renting Out a Room on Airbnb: When you have space at home, rent it to earn income.

• Creating and Selling an Online Course: Share knowledge and skills through platforms like Teachable.

• Peer-to-Peer Lending: Invest in loans to earn interest through platforms like Lending Club.

• Selling Digital Products: Create and sell software, ebooks, or designs online.

• Monetizing a YouTube Channel or Blog: Use ads, sponsorships, or affiliate marketing.

Q. How can I generate passive income online?

To generate passive income online, consider these strategies:

• Affiliate Marketing: Use social media and blogs to share the products and earn.

• Creating and Selling Digital Products: They can be apps, ebooks, courses, and others. 

• Monetizing a YouTube Channel or Blog: Use ads, sponsorships, or affiliate links.

• Selling Stock Photos or Videos: Use platforms like Shutterstock or iStock.

• Creating an Online Course: Teach a skill and sell access to the course.

Q. How do beginners start passive income?

To start generating passive income as a beginner:

• Identify Your Skills: Determine what you're good at or interested in.

• Choose a Platform: Select platforms like YouTube, blogging, or affiliate marketing.

• Create Content or Products: Develop digital products or content that can be monetized.

• Invest Wisely: It's good to invest in stocks, real estate, and MFs.

• Learn and Adapt: Continuously learn about new passive income strategies and adapt to changes in the market.

Q. Do I have to pay tax on passive income in India?

In India, passive income is taxed under different categories depending on its source. For example, income from investments like stocks or real estate may be taxed as capital gains or rental income. It's important to consult with a tax professional for clarity. Generally, passive income is subject to income tax, but specific rates and deductions can vary based on the type of income and individual circumstances.