34 Business Ideas To Implement In Rural Areas [In 2020]

Devashish Shrivastava Devashish Shrivastava
Sep 25, 2020 14 min read
34 Business Ideas To Implement In Rural Areas  [In 2020]

This post describes some incredible rural business ideas that can be launched on a full-time basis or as an afterthought. If you live in a rural area, it may seem hard to think of business ideas. Numerous business sectors that are easily accessible in the urban areas are not available in the case of rural regions. The communities in the latter region face problems that city-dwellers aren't aware of. However, when there's creativity and acumen, everything's possible.

Rural regions play a major role in the growth of the Indian economy. The Fast Moving Consumer Goods (FMCG) segment in rural and semi-urban India is expected to reach US$ 100 billion by 2025. The rural FMCG market is foreseen to improve at a CAGR of 17.41 per cent.

Development Through Rural Business Ideas
Goals Of Rural Improvement
Impact Of Rural Business Ideas In Growth
Need Of Advancement Through Rural Business Ideas
34 Best Small Business Ideas For Rural Areas In India

Development Through Rural Business Ideas

Businesses have the capability to enhance the life and financial well-being of people residing in non-urban locations. Education, entrepreneurship, real infrastructure, and social infrastructure are critical for formulating the development of the rural regions.

Goals Of Rural Improvement

The need for growing businesses can be understood through the following objectives:

  • The growth of business in the rural and semi-urban regions allows residents and citizens to progress.
  • Positive modification of the village neighborhood.
  • Upgrade the norm of people living in the rural regions.
  • The requirement of social infrastructure such as health care, drinking water, education, sanitation, residence, road electrification, etc.
  • Curing poverty in rural areas and enhancing the integrity and the lives of people staying there.
  • Maximum utilization of regional reserves without adversely influencing the habitat.
  • Development of both agriculture and non-farming actions so as to develop gainful assistance.
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Small Rural Business Ideas In India

Impact Of Rural Business Ideas In Growth

The rural value is categorized into two sectors:

  • Agricultural.
  • Non-agricultural.

Equity is crucial to realize increased productivity which in turn leads to greater development. An agriculturist will arrange cash for a farming objective that requires investment in the form of fertilizers, etc. Non-agricultural expenses also lead to generation of business and revenue.

1. Agricultural Marketing

Agricultural marketing provides much-needed assistance in the process of transporting agricultural commodities from the agriculturist to the customer.

2. Organic Agriculture And Endurable Development

Organic agriculture does not have destructive impact on the ecosystem. Conventional farming network concentrates heavily on production with the beginning of fresh and bright upheaval. India is self-sufficient and the main producer of several crops.

The nation also focuses on output-oriented technologies like HYV corns, pesticides, and modern fertilizers. India relies on an integrated agriculture policy that thrives for sustainability, enhancement of soil fertility, and physical variety.

3. Rural Market

Regulated demand enables the market to function transparently. The agreements are surveyed by a demand council comprising growers, administration agencies, and merchants. This enables the enforcement of criteria, weight, and fixations on taxes.

4. Agriculture Diversification

Agriculture diversification says that the diversity in crop, output, and other factors relates to the change in agricultural practices, methods, and the shift from single cropping to a multi-cropping policy.

5. Infrastructure Development

India maintains the standards to formulate infrastructure like streets, railroads, and storage to facilitate transportation and holding facilities.

6. Microcredit

Rural thrift banks rely on the intake of equity periodically to realize increased productivity in farming and non-agricultural areas. And the time between serving the product and completion of revenue after creation is quite long. Hence, the need for microcredit.

At the time of India's independence, money lenders and merchants enabled small and huge growers and landless laborers to indulge in agricultural activities by giving them high-interest loans.

An alteration occurred after 1969 when India approved social banking and a multi-agency strategy to meet the expectations of rural credit. Later, the federation for farming and rural development was set up in 1982 as an apex body.

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Need Of Advancement Through Rural Business Ideas

Need Of Advancement Through Rural Business Ideas
Need Of Advancement Through Rural Business Ideas

From 1947-1991, there was no incredible upliftment in the occupancy limitation of rural areas. Though the GDP grew, the living condition of growers in the rural regions wasn't encouraging.

The situation then started to worsen because of the reduction in municipal enterprises and the halt in the administration donation of farming commodities. The attention on farming was low. Consequently, commodity and productivity took a hit.

Insufficient infrastructure coupled with the farming community dealing with the unemployment crisis, electricity issues, irrigation problems, etc. did nothing good for the agricultural sector.

34 Best Small Business Ideas For Rural Areas In India

Small Rural Business Ideas
Small Rural Business Ideas

A benefit of commencing an industry in the village society is the lack of competition. Other benefits include the ease of starting a business, enthusiastic aid, low labor expenses, and networking opportunities.

Banana Wafer Making

Banana wafers are under-ripe bananas that are slashed into slices, spooned in syrup treatment, warmed under the light or in the cooker, fried, and consumed as a snack nutrition or dessert. You can cater to both regional and export demands. Banana wafer making is an easy rural business to start on a small scale.

Small Scale Super Shop

Day-to-day village existence is altering significantly and a super shop brings in tremendous opportunity. Beginning a super shop in a rural setup is slightly difficult. A prosperous industry strategy should encourage you. Thoroughly research the demand and your locale before you start the shop.

Small Scale Super Shop
Small Scale Super Shop

Pet Bottles Production

Pet jar or pet bottle creation is a lucrative manufacturing business. According to specialists, polymer consumption by the Indian plastic industry is anticipated to double in the next 6 years.

A pet bottle production department coupled with efficient injection molding and hit molding processes is a profitable investment for entrepreneurs.

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Vending Buffalo Milk

Buffalo milk is highly valued. With due care and therapy, high-quality milk can be attained. If you are skilled in putting forward, planting, and milking buffaloes, you can begin this industry on your own or with a pair of farmhands. For those not familiar with milking, you can pay skilled dairy laborers to do the task.

Iodized Salt Production

Iodized salt is a white crystalline powder salt strengthened by iodine. People can effortlessly prevent iodine-related weakness by eating an adequate quantity of iodized salt. A rural business idea that's practical, affordable, and meaningful. Anyone can begin iodized salt creation on a small scale.

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You can launch and maintain a blog from anywhere. You need to have good internet connectivity and a device to work on. If you don't have broadband internet, use mobile data. A blog focusing on a niche can be monetized using Google AdSense, associate marketing, and sponsored ads.


Don't expect a huge turnover within a few months, but wait till you start getting serious traffic on your blog. Publish high-quality articles and periodically monitor the blog traffic to derive trends and patterns.

Air Bubble Packaging

An air bubble wrapper is an important component of the packaging industry. The need for securely wrapping welfare and fragile commodities has vacated a vast gap; entrepreneurs can leverage the manufacturing of air bubble films to bridge this divide.

Integrated Fish-Cum-Duck Polyculture

Keeping ducks along with fish ponds suits the fish polyculture procedure perfectly. You need a water body, a pond for example, to go ahead with this business idea.

Diagnostic Center

Just like the residents of municipal cities, occupants in semi-urban towns and rural regions are equally cautious about catching illnesses. Basic healthcare capabilities are given by the administration through dispensaries, but the need for a specialized diagnostic center cannot be undermined.

Diagnostic Center
Diagnostic Center 

Initial costs include that of setting up the premise, purchasing equipment, hiring technicians and other staff, and establishing connect with different laboratories.

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Agarbathi Making

A person can begin an Agarbathi making business either on a small scale or by going all-out. Agarbathi is an essential aspect of almost every Indian household both for religious and aromatic reasons. Local agarbathi corporations witness appreciable revenue in India. You can do the same in a rural setup where the costs you incur will be lower.

Goat Farming

Goats have a major role to play in the agricultural segment, dairy, and poultry sector. They are as valuable as cows and hen. Goat farming is another lucrative business idea in a rural setting. You'll need some helpers initially.

Coconut-Based Business

Coconuts are an essential component of the Indian economy. The nation is the largest producer of coconuts on the planet. Coconuts are grown over 1.94 million hectares of Indian land. Around 90% of the coconut-accumulating-areas occur in the four southern states of India with Kerala accounting for about 50% from these four states.

Rural Marketing

If you are good at marketing, this rural business idea is for you. Your firm could collaborate with other corporations (for a fee per head or based on the assistance provided) and deploy marketing strategies such as door-to-door promotion, pamphlet distribution, etc.

Many media agencies specialize in attracting people in large towns and individuals with online presence through mediums like TV and billboards. But only few target rural neighborhoods. That is where you could barge in and begin a marketing agency to target people in rural and semi-urban settings.

Small Gym Or Fitness Centre

A gym or health center is not that popular in rural areas, but it can be extremely rewarding if you are ready to put in the efforts. Before you start, ensure you have fitness trainers to assist you. Of course, if you are into fitness yourself, you can contribute as well. Starting a gym in rural areas requires lower investment as compared to launching one in the cities.

Small Gym Or Fitness Centre
Small Gym Or Fitness Centre

Paper Bag Making

Paper bags are crucial for packaging and/or holding items. This is one of the best industry impressions you can launch in rural areas.

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Broadband Internet Provider

This business idea might sound hazardous and equity-urging but it is potentially rewarding. You can become an internet assistance provider in the rural regions. Your target consumers should be the youth relying on mobile data; give them access to high speed internet and watch your profits surge.

Jute Bag Making

Jute is a biodegradable eco-friendly fabric. Jute bags have a relatively good market need and export capacity. By having reasonable machinery, you can instigate a jute bag unit in your residence area itself. For an eco-friendly personality, jute cords, jute cloths, and other jute commodities are essential.

Growing Cotton

Growing crops that are in demand in India and different countries is a tested way of generating income. The thriving crops in India are rice, wheat, maize, mustard, bamboo, jowar, cotton, tea, spices, medicinal plants, condiments, and sugarcane. A profitable business idea for farmers and those with some knowledge about farming.

People are willing to spend on high-quality crops rather than purchasing bad crops at low rates. So if you can provide quality produce in the market, you'll never fall short on buyers.

Bio-Diesel Production

Bio-diesel production apparatus can be set up on a small scale at any place where Jatropha oil, the major ingredient, is effortlessly accessible. There is a continual inspection of renewable streams of energy due to diminishing fossil fuel availability. The need for bio-diesel is increasing rapidly in India.

Duck Farming

Duck farming industry is a successful business that many are pursing in villages and other rural areas. To begin this business, you need to possess a big area or a turf. Duck farming is simple and concession-free.

You can nurture your ducks in low, high, wet, dry, and all other sorts of conditions.

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Opening A Restaurant

The food and juices business is one of the fastest-growing ventures in India. And in rural areas, cuisines and fast food pick pace at an unimaginable rate. The concept of cafes is yet to be fully realized in such places. Take advantage of this trend and start a successful restaurant or cafรฉ!

Opening A Restaurant
Opening A Restaurant

Spice Powder Making

Spice powder making business assures a decent recovery. Even a home-based spice making initiative can churn profits. Chili powder, turmeric powder, coriander powder and what not...it isn't that difficult to manufacture spice powder. Moreover, these is massive scope for expansion.

Candle Making

Aromatic ornamental candles have a huge demand. There are several uses of such candles: decoration, religious reasons, etc. A candle making unit can be started on a small scale and as a part-time endeavor. Women entrepreneurs are spearheading this segment by showcasing innovations in candle making every other day.

Aluminum Foil Manufacturing

Aluminum foil is employed in several businesses in different ways. Some of these include pharmaceutical pills, unitized packaging of tea and coffee, ready banquets, bakery commodities, frozen poultry, fish, milk container lids, wine, lube oil, greases, powdered milk, confectionery, biscuits, photographic picture, gift robes, butter, home wraps, margarine, and cigarettes. Aluminum foils are here to stay.

Solar Business

India is enriched with huge solar energy ability. About 5000 trillion kWh of solar power occurs over India's land area every year. Most fractions only yield 4-7 kWh per sq.m of energy every day. Solar thermal and solar photovoltaics are the two technology paths for the modification of solar radiation into warmth and electricity. With the advancement in technology, solar energy is a profitable niche to start a business in, especially in rural areas.

Solar Business
Solar Business

Yard Clean-up Service

If you have access to a ride-on lawnmower and any other power-operated yard equipment, this is a business idea to be considered. Since you'll be helping in enormous regions that want clean-up, the need for helping hands is a must.

Yards in rural areas can be enormous, extending beyond several acres in some cases. Your yard clean-up service will assist in clearing vast yard areas, and this will distinguish your business from opponents that do minor yard clean-ups and landscaping. For people in villages, governing huge properties is a challenge and periodic clean-ups are essential.

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Mushroom Farming

Mushrooms have seen an increased demand in recent times. People now see mushroom as an essential ingredient of everyday cooking. And mushrooms don't sell for cheap. The territory required to grow this edible fungus is effortlessly accessible in villages and rural areas. The mushroom harvesting industry is a great segment to step into if you are thinking of a small-scale business idea.

Ginger And Garlic Paste Making

Ginger and garlic paste is primarily wielded as a seasoning in several nutrition practices and also fulfills as a carminative and gastric stimulus in many therapies. As instant combinations and sauces are becoming popular, the need for ginger garlic paste is also improving. The creation procedure isn't that complicated. The commodity has enormous scope for export as well.

ATM Space Renting

ATMs need space for functioning. Banks usually lease an area for some years, and the treaty is rebuilt every two to three years. If you are looking forward to an overhauled monthly income, ATM space rental is a decent retail business recommendation.

Computer Training Institute

If you're a computer specialist and can teach others how to operate a computer, you can begin a computer training institute in rural areas. Everyone's getting tech savvy and the number of computer literate individuals is increasing in an unprecedented manner. Bank on this opportunity and start teaching people Microsoft Word, Powerpoint, Excel, and other applications.

Jam Jelly Making

Any person can begin jam jelly making from home. As your business thrives, you can expand the catalog of items on offer. Jam jelly manufacturing requires ordinary machinery and appliances. These are consumable diet items and have extremely reasonable market needs.

Cashew Processing

In cashew processing, the manufacturing action encompasses cell cuisine, slashing, cashew core drying, peeling, rating, and filling. Besides, you can commence cashew nut processing on a small scale and as an export-oriented factory. Also, the industry mandates easy machinery.

Packaged Drinking Water Production

The shortage of pure drinking water has created a yawning gulf for packaged drinking water. Urban or rural, packaged water is a necessity.

Before you dive into the packaged drinking water business, it's imperative to survey the PH proportion of water where you will set up the unit.

Packaged Drinking Water Production
Packaged Drinking Water Production


If you want to start your own business in a rural area, this is the best time. At the end of the day, you need to work hard, put in maximum effort, and make financial sacrifices to sustain your business. At the same time, you can't cave under debt or some other liability. Ideate, deliberate, and create!

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