Home Business 25 Best Business Ideas for Villages & Rural India For 2023

25 Best Business Ideas for Villages & Rural India For 2023

by PoonitRathore
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India has traditionally been a rural economy. We must have heard at least once in our lifetime about how agriculture plays a role in the country’s economy. For a long time now, villages have only been seen as a place for farming. Still, due to the massive push by the government under schemes like PMAY-G, PMGSY, and Mission Antayodaya and paired with the extensive development in technology and the internet, rural areas have become a hub for more than the good old agriculture. According to Statista, rural industries’ products amounted to more than 800 Billion Rupees in FY 2022. Many opportunities & business ideas have emerged, and people are returning to their roots to start profitable and economical businesses.

Today we have brought you top village business ideas that you can venture into to start your entrepreneurship journey. Either way, you can be a resident or an outsider, and these ideas will get your brain running and open your eyes to huge opportunities standing right in front of you. So, let’s begin.

Why Should you Start a Business in a Village?

Apart from the fact that the Government of India has given a great push to the rural industry, other reasons may attract you to starting a business in village. Some of these reasons are mentioned below:

  • Economical: Villages are comparatively cheaper than urban and semi-urban areas. Land, electricity, transport, labour, and everything you may need for your business can be more economical in rural India.
  • Less Competition: Since villages have just started to develop with more opportunities and better resource management, the competition is still on the shallow side. It does not matter what kind of business you want to start, and you can be assured that you will easily find a place for your business in the rural market.
  • Abundant Opportunities: Village businesses are plump with opportunities for you to start something big. Every business – culinary, manufacturing, retail, etc.- can succeed in village areas due to an untapped consumer base and huge market potential. Firstly let us know the total village count of each state in India.

Number of Villages Per States in India (Data: 2019)

Pie chart showing total number of Villages Per States in India
Pie chart showing total number of Villages Per States in India. Source: wiki.openstreetmap.org
States Village Count
Andhra Pradesh 17,973
Arunachal Pradesh 5,577
Assam 28,679
Bihar 45,172
Chhattisgarh 20,578
Goa 412
Gujarat 19,002
Haryana 7,602
Himachal Pradesh 20,934
Jammu and Kashmir 7,251
Jharkhand 32,725
Karnataka 33,182
Kerala 1,665
Madhya Pradesh 55,256
Maharashtra 44,146
Manipur 3,827
Meghalaya 6,799
Mizoram 837
Nagaland 1,614
Odisha 52,141
Punjab 13,087
Rajasthan 45,910
Sikkim 453
Tamil Nadu 18,463
Telangana 11,235
Tripura 898
Uttar Pradesh 1,08,910
Uttarakhand 17,033
West Bengal 41,002

How to Start a Business in a Village in India

Different village businesses may have different legal, technical, and monetary requirements. However, the basic steps that every business needs to follow remain the same.

1. Idea

The first step before starting a business is to have an idea of what you want to do. Entrepreneurs must be clear about their industry, type of business, interests, demand, and supply of resources before finalizing the idea for a business.

2. Money

The idea for a business must be matched with the necessary investment required to kickstart the business. Entrepreneurs can use their own money or take loans to start their ventures. Many different government schemes also provide interest-free loans for entrepreneurs to start their journey.

3. Legal Requirements

The next step is to take care of all the legalities related to your business. Having a good attorney to support your legal requirements will ensure that there is no mistake in your legal background. You will be able to focus solely on building your business.

4. Infrastructure

Now that you have the idea and the investment, you can start gathering the infrastructure for your business. This might include different things depending on the type of your business. Rental businesses may require a well-conditioned property, while a fertilizers business may require storage space, stock of material, and other things. Different businesses may have different infrastructural requirements to allow them to run smoothly.

5. Start your Business

Now that you have your suppliers, your infrastructure, your capital, and all the other requirements to run your business, the last thing to do is begin your business. Make sure to provide the best quality of products and services to spread positive word of mouth.

List of Top 25 Business Ideas for Rural Areas in India

1. Affiliate Marketing

affiliate marketing
Affiliate Marketing

If you have good Internet access then you can easily start this online business by creating a website and using affiliate links to make money. Affiliate marketing means promoting products and services of different brands and earning money with every purchase. To get started, follow the steps below

  • Decide a niche
  • Choose a platform
  • Build an audience
  • Join an affiliate network like EarnKaro
  • Create unique content
  • Start sharing affiliate links and earn money

If you’re feeling enthusiastic about everything discussed here regarding affiliate marketing, we highly recommend exploring our comprehensive guide on starting affiliate marketing from scratch.

2. Organic Farming

View from a farm
View from a farm

Due to the increased usage of chemicals like pesticides and fertilizers, vegetables and fruits have started to lose their nutritional content. This, in turn, is becoming the reason for a large number of diseases in youngsters as well as adults. Due to this problem, organic farming has regained ground again. Why do people leave their jobs in metropolitans and urban areas to start organic farms? What is so sweet about this? The answer is twofold. Firstly, consumers are ready to pay a higher amount to get the best and safest product for them to consume, and secondly, there is a serious lack of nutritious products in the market. You can start cultivating any vegetable or fruit you want in the most natural way to start your own organic farming business.

3. Retail Store

Image of an Retail Store
Image of an Retail Store

This is not a new one. Kirana Stores are available at every corner in every village of the country. So, what’s new? It is the consumers’ perception of wanting more. The rural population these days wants a large variety of products to choose from, and Kirana stores do not fill the gap anymore. Retail Stores are a great business idea in village areas as they provide a great lineup of products for consumers.

Moreover, if are looking to start an online business in Delhi then we have the perfect list of the best small business ideas in Delhi that can be very helpful for you. Do check it out.

4. Manufacturing Units

manufacturing unit in a factory
Manufacturing Unit

As mentioned above, labour is very economical in rural areas. Labour forms the backbone of any manufacturing plant. So, when you get cheap labour for your business, you can relax that a major part of your business is running smoothly. You can start any manufacturing plant – bricks, cement, disposables, steel, paper, etc. in rural areas to gain an economic advantage in the industry.

5. Transport Service

Image of truck
Image of truck

More often than not, villagers require transport services to travel between home and work. That is where you come in. While the older generation prefers public transport like Buses and Autos, the younger generation is much more interested in the luxuries of life. You can start a local taxi business to carry villagers in and out of their homes and keep the prices however you want. Since the competition is low, you can easily tap the market to create a profitable business. However, keep in mind the costs of skilled drivers, vehicles, and fuel to create the right strategy for your business.

6. Tutor

Image of a Teacher
Image of a Teacher

The government of India has been pushing for higher literacy for years. Higher Education is tough, and students require help sometimes, which is where you can create a business for yourselves. If you are a working professional, you can start weekend coaching, but if you are not, you can even make this a full-time business. Being a tutor is cost-effective, time efficient, flexible, and has lesser chances of failing as a business. So, if you have expertise in some elementary subjects, being a tutor might do the task for you.

7. Educational Institution

View of a collage degree
View of a college degree

Hot on the heels of being a tutor, you can even think bigger to start a full-fledged educational institution. A college, school, or even a coaching centre provides different courses. You can set your business apart by providing top-notch educational facilities through trained teachers and experienced administration and making a difference in your as well as others’ lives.

8. Solar Power

Image of Solar plan
Image of Solar planSolar plant

It is true that even after many efforts from the state and central government, there is still a long way to go for villages to have 100% electricity. You can turn this problem into a business opportunity by providing doorstep installation for solar panels and training the villagers on how to use the same. This market has existed for some years now but is yet to develop into full bloom.

9. Milk Farm

A jar full of milk
A jar full of milk

Believe it or not, Amul was once a small cooperative in a small village in Gujarat. You can learn from their story to start a local milk farm to provide people with the best dairy products. Villagers usually keep cows and buffaloes in their households and sell milk to other people. You can easily create an arrangement with the locals to set up an industrial plant and start manufacturing different milk products like curd, cottage cheese, ghee, and much more.

10. Medical Store

Image of a medical store
Medical Store

This one is tricky but has huge potential. The tricky part is that government regulations require every pharmacist to have a B.Pharma qualification. The good part, however, is this business’s immense potential. This is one of those businesses the demand of which never goes down. Also, villagers have to suffer due to the lack of availability of basic medicines near their houses. So, if you can fulfil that one technicality, you will be on your way to creating a successful business.

11. Poultry Farming

One of the best businesses for rural India, poultry farming involves selling young chickens after raising them till a certain age. You could initially start this business by entering a contract with a supplier. You would be provided with the chickens, their food, and everything else. All you would need to do is take care of the birds until they reach the appropriate age/weight. You would get paid depending on the number of birds or the weight of the hens.

12. Bakery

Image of Freshly baked Cookies
Freshly baked Cookies

People who have an interest in baking can make a profitable business out of the same. Bakers can use the pure ingredients that are available in any rural area to deliver different products like cakes, loaves of bread, pastries, and much more.

13. Packaged Drinking Water

Image of a Packaged Drinking Water
Packaged Drinking Water Source

Regardless of whether you reside in a town or a village, everyone should have access to clean drinking water. Due to a lack of water treatment facilities or infrastructure, villages face a scarcity of clean drinking water. Entrepreneurs can use large cans to store and transport freshwater from tube wells or hand pumps to villages’ doorsteps. A huge business opportunity can be tapped into due to the huge demand for freshwater in every village. ‍

14. Ice Cream Parlor

Flavored Ice Cream Cones
Flavored Ice Cream Cones

Starting an ice cream shop in a village can provide multiple times returns for the necessary capital that you invest in your business. Ice cream is a favourite food for people of all ages, genders, and locations. India’s hot climate creates a huge demand for ice creams and kulfi during the summertime. The same can be leveraged to create a sufficient income stream. ‍

15. Sweets Shop

Rasgulla
Image of a bowl full of Rasgulla

Having a sweets shop can be a huge business opportunity in rural areas of India. Sweets Shops that provide pure sweets and are set up in a decent location can make great profits by selling different varieties of sweets for different purposes. Festivals, weddings, birthdays, etc. can prove to be major moneymaking opportunities for sweets shop owners.

16. Fertilizers/Pesticides Store

Men Spraying Pesticides
Men Spraying Pesticides

Farmers in villages frequently travel to large towns and cities to purchase pesticides and fertilizers. Entrepreneurs can look to solve this problem by supplying fertilizers and pesticides from different companies. Entrepreneurs can also supply organic manure and seeds along with their main business to supplement their income.

17. Mills

Rural residents depend on freshly processed flour rather than purchasing pre-packed products. Starting a mill to produce fresh flour, corn flour, besan, turmeric, chilli, etc. can provide a great business opportunity for budding businesspersons.

18. Jute Bags Production

Jute is one of the most effective natural fibres that are easily recyclable and biodegradable. Entrepreneurs can start a small business in their village and make jute bags to create a great business venture. These jute bags have an increasing requirement with eco-friendly & Made in India products getting a special push from the government. This business can be operated by anyone, even from their own house. Moreover, moms, homemakers, and women, in general, might benefit greatly from this small business opportunity in rural areas.

19. Clothing Store

Clothing Store
Clothing Store

Most villages are far from bigger towns and cities. Opening a clothes shop that offers the residents the newest fashion trends and high-quality materials can be easily successful. Owners of businesses will need to locate clothing suppliers who can deliver a selection of garments.

20. Diagnostic Clinic

Diagnostic Clinic
Diagnostic Clinic

In India, the government provides basic healthcare services through dispensaries, but there is always a need for specialized diagnostic centres that can treat patients locally for less money. A diagnostic centre can be opened with little capital investment. The initial investment covers the rent for the facility, the cost of the medications, the staff’s salaries, and a valid certification.

21. Electronics Store

Villages should not lag in technology, communication, or entertainment as they make up most of India’s population. Mobile phones and other electronic items are becoming a requirement for every person, no matter who they are. Starting an electronics store to provide smartphones, accessories, TVs, laptops, and much more can provide great returns on your investment.

22. Flower Farming

Farmland with Tulips
Farmland with Tulips

Flower farming also known as floriculture is a growing industry in India. Different festivals and occasions require flowers in huge quantities. Different varieties of flowers can be cultivated year-round and supplied to event managers as well as private individuals to turn in a good profit.

23. Rental Business

Several governments and private companies are always looking for places in villages where they could set up their branches or ATMs. One of the best small businesses in villages is to rent out an extra house, an empty store, or any other property. Entrepreneurs can easily make a recurring income by renting out their property for official purposes. ‍

24. Juice Shop

Vendor Handing a Glass of Juice to the Customer
Vendor Handing a Glass of Juice to the Customer

Villagers are always big fans of naturally extracted fruit juice. Different kinds of fruit juices can be provided by shop owners to attract a variety of customers. Juice Shop owners can also diversify their menu to create basic mocktails and shakes that will help them in bringing more youngsters towards their business.

25. Mechanic

Mechanic repairing a car
Mechanic repairing a car

It is a reality that most village residents have some form of automotive transport. Whether it is a car, a bike or a scooty, villagers require certain mechanical assistance for these vehicles from time to time. People with a good knowledge of automobiles can open a mechanic shop and make good money by providing professional repair services to the village residents. You can also hire other mechanics to help your business venture.

Business Challenges in Villages and Rural Areas

Villages and rural areas often face unique business challenges due to their distinct characteristics and limited resources. These challenges can vary across different regions, but here are some common ones:

1. Limited Infrastructure

Rural areas often need more roads, electricity, and telecommunications. This makes it difficult to establish and operate businesses that require reliable transportation, connectivity, and access to utilities.

2. Lack of Skilled Labour

Rural areas may have a limited pool of skilled workers due to a lack of educational opportunities and migration to urban areas. Finding and retaining employees with specialised skills needed for certain businesses can be challenging.

3. Market Access and Transportation

Rural areas usually have limited access to markets and distribution networks. The cost of transportation can be high, especially for perishable goods, and the need for efficient logistics can restrict the movement of goods and services to and from rural areas.

4. Limited Financial Resources

Access to capital and financial services is often limited in rural areas. Banks and financial institutions may be scarce, making it difficult for entrepreneurs to secure loans or investments to start or expand their businesses.

5. Seasonal and Agricultural Economy

Many rural areas rely heavily on agriculture, which is often seasonal and subject to weather conditions. This can lead to income fluctuations and challenges in maintaining a steady cash flow throughout the year.

6. Lack of Market Information

Rural entrepreneurs may need help accessing up-to-date market information, including consumer preferences, demand trends, and pricing dynamics. This can hinder their ability to make informed business decisions and adapt to changing market conditions.

7. Limited Access to Technology

Technology adoption and internet connectivity can be limited in rural areas. This restricts access to online markets, e-commerce platforms, and digital tools that can improve efficiency and competitiveness.

8. Social and Cultural Barriers

Rural communities often have social and cultural dynamics that can influence business operations. Building trust and relationships within these communities, understanding local customs, and adapting business practices can be crucial for success.

9. Distance to Urban Centres

Rural businesses may need help to attract customers and clients due to their remote location. The distance to urban centres can encourage potential customers to travel to rural areas, impacting sales and revenue.

10. Policy and Regulatory Constraints

In some cases, policies and regulations may not be conducive to rural entrepreneurship. Lack of support and incentives for rural businesses, restrictive land-use policies, and cumbersome bureaucratic processes can pose significant challenges.

Things to Remember When Starting a Village Business in India

  1. It would be best if you started small when setting up a business in a rural area. Things are different in villages compared to urban and semi-urban areas, and you never know if your idea, however great it might be, will be successful or not.
  2. Pay attention to consumer perception before you start a consumer-based business in a rural area. Differences in perception can be a hard hit for your business and cause losses.
  3. Provide the services that the villagers need. Not understanding what the locals want may cause low revenues and, ultimately, losses in the business. Understanding your customer is the most important thing in the market.

In addition to this, we would also like you to check out our latest blog where we have featured some of the most successful business ideas in Kolkata. Do have a look.

Conclusion

There is no lack of opportunities in the Indian countryside. If you think you have a great idea and can make it work by letting go of your cosy lifestyle, then starting a business in a village may be the best thing for you.

FAQs

Which business is best in Indian villages?

Some of the best businesses in Indian villages are affiliate marketing, organic farming, retail store, manufacturing units, and restaurants.

Which business is more profitable in the villages?

Organic vegetable farming or product is one of the most profitable businesses in villages.

Which business is best for the Village area with a small investment?

Businesses you can start with small investments in village areas include affiliate marketing, retail business, apparel store, dairy business, tutoring service, and selling seeds & fertilizers.

Why do we need insurance for the poultry business?

In India, poultry farming is a highly volatile industry with significant gains as well as losses. The farmer loses money, and the breeding program is interrupted in the event of a bird’s death. Poultry insurance pays farmers for losses that are more than a predetermined limit so that the farmer has complete control over the loss. For a minimal fee, poultry insurance acts as a risk-transfer mechanism. All varieties of exotic and crossbred poultry birds from poultry farms in India are covered by the Poultry Insurance Scheme.

Can one get a business loan for a poultry farm?

All financial institutions offer credit facilities to entrepreneurs at competitive rates after first assessing their demands. To start a poultry farming business, an entrepreneur can also apply for a loan under the government program MUNDRA.

Is there any support provided by the government for organic farming?

Yes. The Indian government offers support for organic farming across the country through different schemes, including Paramparagat Krishi Vikas Yojana (PKVY), Mission Organic Value Chain Development for North Eastern Region (MOVCDNER), Capital Investment Subsidy Scheme (CISS) under Soil Health Management Scheme, National Mission on Oilseeds and Oil Palm (NMOOP) and National Food Security Mission (NFSM).

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