Five business ideas to start in rural areas of India

This article provides the business ideas for people living in rural area or those who want to start a business in village. These businesses can prove to be lucrative in long run and can be started by both men and women. A little knowledge and management skill is sufficient to start the business. There are lot of government schemes which provides loan on low interest so that people living in rural area can start their own business.

Business in rural area

In India, almost 70% population resides in villages or rural areas. Since, there is no means of employment; people are migrating to cities and towns in search of job. But, there are many business ideas which can be started in rural area in low budgets. Some of them are pottery, agro-business, fisheries, saloon etc. Below, I have mentioned five business ideas which can be started in rural area. These businesses require good management skills, a little effort and hard work. Interested people may avail loans from the banks to buy the equipments.

Distribution of mobile and prepaid cards business

In India, mobile device has become common both in urban area or rural area. In urban cities, people prefer postpaid connections. But, the scenario is different in rural area. In villages, people prefer to have pre-paid connections. They purchase small top-up cards according to their needs. Therefore, starting a distribution business of mobile and prepaid cards can prove to be profit making business.

Grocery shop/store business in rural area

In rural area, setting up the grocery shop/store is one of the lucrative business ideas. In villages, the competition is very less and hence, the grocery shop business venture proves to be profitable. A person can start the grocery store from the home. All that is required to start the grocery shop is positive attitude and 'customer-first' mindset. Setting up the grocery store requires a lot of planning. A lot of calculation, hard work and survey are required to have the idea of the quantity of the products to buy. The products have to be organized in the store so that customers feel easy and comfortable to shop. One may buy the products from the wholesale market or directly from the manufacturer.

Dairy Farm business in rural area

Dairy business is one of the traditional businesses which are being running from many generations. But, people in rural area are not aware of the profits that can be made through dairy farming. Milk and milk products have great demands in every part of the country. In villages, people own buffaloes and cows, but do not have knowledge and idea about the expenses and the mechanism to raise the animals. Hence, they cannot convert the dairy business into profit making business. If you own milk producing animals, you can set up a small scale dairy farm in the village. You can sell milk, curd etc in village and nearby areas. If big dairy companies are established in nearby area, then one can the milk to those industries and make profits. Later, when you have enough money, you can invest milk processing units to expand the business. Though the establishment of dairy farm business is expensive, but it would be prove to profit making business in a long run.

Tailoring business in rural area

Tailoring business can be started by any person who is interested in stitching clothes. Whether you are a male or female, a little training and tailoring skills can help you to set up a tailoring shop. There are many institutes which offer certification and short term course in tailoring, stitching and embroidery. The person can join these courses to enhance the tailoring skills. The tailoring business can be started alone in a very small area. If you do not have money to rent a shop, one can start the business from the home. Later, when money begins to flow, you can look for a location to start the tailoring shop. When more customers start to come to your shop, you can hire some more employees. If you do not have money to start the business, you can take up the loan from the bank. There are many government schemes, which provide help to the people living in rural areas to start the business. So, if you have decided to start tailoring business, take up the loan to buy necessary equipments such as sewing machines.

Tea stall/ Sweet shop business in rural area

If a person has good hands in cooking, then setting up a tea stall or sweet shop is excellent business idea. In India, people are fond of consuming tea. In rural area, people go out for walk in group and gather at places where they can have some snacks and tea. So, if you are expertise in making different kind of pakoras and tea, then the tea stall business will run efficiently. If you can hire people who are expert in making variety of sweets, then it will be an added advantage.


If you have decided to set up the business in rural area, then prepare a proper business plan. Research the area and do the thorough analysis. If you wish to get a loan from the banks, arrange all the papers and documents and then approach to the bank officers. These businesses will not only prove profitable to the person who started the business, but will also create opportunities for other people to earn some good money.

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Author: Pravat Kumar Das10 Sep 2014 Member Level: Gold   Points : 7

Business in rural area can be classified as per the investment capacity.

If a person is poor and can invest very little amount, then the best option is starting agriculture and sell to direct vendors who are selling vegetables in near urban areas.

They can start with papaya, drumb stick, cucumber, pumpkin, coconut, beetel nuts, and can do fisheries or else poultry which is available as per there resources.

If a person is having bigger money to invest then they can start a cold storage as most of villagers are depending upon agriculture but due to shortage of storage space they dispose there products at very lower price.

As Village area is full of jungle they can do Goat farming also ( now days huge requirement of Goat meat in rural as well as urban areas).

If you want to place a industry ( small scale) you can plant a rice mill as many villagers doing rice and wheat agriculture.

So it is always better go to your near by District industry commission office.
Just consult with them about your village, resources available with you and you can get from other source then they would guide you in a better way to start a good business with good profit plan.

Author: RAVI KIRAN AKELLA06 Oct 2014 Member Level: Bronze   Points : 4

Nowadays there's increasing craze about online services. This concept can be tapped for business enhancement in rural areas, establishing small scale IT service unit. It is like playing mediator-ship between available online services and illiterate persons who are ignorant to usage and power of IT. Such a mediator-ship can help them get access to several online services - provided by various government and non government agencies such as IRCTC,, Flipcart and even online application fillup for various exams like UPSC, RRb etc. This type of business just requires one to learn few aspects of using these online services and ability to manage and balance pricing of their services.

Guest Author: R.L. Sharma01 Nov 2014

I want to start a cottage business but I have no capital. Please advice me what kind of business will be suitable for rural area and from where I can get loan as a capital.

Guest Author: Shri.Sainkupar D Fan17 Nov 2014

I want to set up a mini cold storage of about 100MT capacity but I have no idea about how to start. Will you please help me?

Author: Madhvee Chaubey24 Nov 2014 Member Level: Gold   Points : 5

@Shri.Sainkupar D Fan: To start a mini cold storage business, you need to determine the type of business and the area where you are going to run the business. You can start with a small investment. If the business runs fine, move ahead. For a 100 MT capacity mini cold storage set up, you will need to invest approximately 6 to 10 lakhs . This cost will include civil construction, plant & machinery, electrical etc. You will require land of about 1500 sq. ft. to set up the mini cold storage of 100 MT. To support the unemployed people to set up their own business, government schemes like NABARD and Pradhanmantri Rozgar Yojna(PMRY) are running. For more details about the schemes, contact the concerned authority.

Author: Madhvee Chaubey24 Nov 2014 Member Level: Gold   Points : 3

@ R.L.Sharma: If you want to start a business in rural area with very less investment, then you can start with vegetable shop/ fruit shop. You can also set up a welding shop or auto repairing shop. If you do not have money to invest, you can take loans from the government schemes running to support the unemployed educated youth. NABARD and PMRY are the two schemes which provide loans for farm,non-farm sectors and for setting other small business.

Author: Ashok Goyal24 Nov 2014 Member Level: Gold   Points : 5

Having served in rural areas I have found that business of establishing "Generator Set" to supply electricity to all the shopkeepers in the market is best idea. In one of the village one businessman had installed the "Generator Set" which supplied electricity to about 30 shops in the market from a single generator set. As all the small shopkeepers can not invest capital for Generator Set and it will also make the market full of noise and air pollution, the idea is implementable and if the owner takes refundable security of say Rs.2000/- per shop from 30 shops then the owner will get the working capital of Rs.60000-00 free of interest. Try this idea to have monopolistic electric supplier of electricity in the village which can be extended to homes for domestic supply in case of power cuts as everybody wants to keep their fan running in hot summer days of June to August.

Guest Author: Ratnesh singh01 Dec 2014

I want to set up a dairy farm with 25 animals in my village. Please suggest me the proper idea and how much capital is required to start this business.

Guest Author: ashu10 Dec 2014

My name is Ashu Chauhan and am looking for dairy farm with 10 animals. Suggest me whether buffaloes are best or cows.

Guest Author: smita14 Dec 2014

I would like to relate some online services in my village. Can you give some good suggestions?

Guest Author: Pardeep27 Jan 2015

I am doing job since last 5 years. Now I want to start a business in my village. I have a 4 acres agriculture land, I want to start business there. Is not a good option to me - Please suggest.

Author: Madhvee Chaubey10 Apr 2015 Member Level: Gold   Points : 2

@Ashu: Buffaloes and cows, both are good options. But, buffaloes need more maintenance than cows. The fat in buffaloes milk is more. Now-a-days, people prefer cow's milk as it has less fat. So, you can keep cows of good breed, so that you may sell good quality of milk.

Author: Madhvee Chaubey10 Apr 2015 Member Level: Gold   Points : 2

@Pradeep: Yes, you can start the business in the agricultural land. But, before you start any business, do proper research such as availability of raw material, transportation, maintenance etc. I would suggest you to establish a farm house, in which you can grow different types of vegetables or fruits.

Guest Author: atul12 May 2015

I have only 20-30000 to invest please tell me a good business idea

Guest Author: Sainkupar D Fancon16 May 2015

Hello! I want to start a briquette manufacturing plant, so I want to know if briquettes fuel will work in Lime kiln just like firewood?
Thank You!

Guest Author: PraveenPujari27 May 2015

My Brother is in Village where he wants to start a business, the budget will be 1 to 1.5 lakhs. He has experience in Pharming, Running Milk Dairy can you suggest any thing related to this or start new like mobile cards retail and mobile phone sales. please let me know

Author: Madhvee Chaubey06 Jun 2015 Member Level: Gold   Points : 3

@Atul: The business would depend on the interest. Since you have only Rs. 20000 -30000 to invest, you can start a vegetable or fruit shop. You can also think about starting a barber shop. You can also start snacks shop, where you could sell samosa, fritters(pakodi) or tea stall. It totally depends on your interest.

There are various government schemes, which offer loans to setup the small business. You can contact with the bank officers, and know about such loan schemes, if interested.

Guest Author: aditya singh01 Jul 2015

my village is so far away from city and not so big what is the best business idea for my village that can i start up
bugdet is 1 to 2 lacks
my village is lidhaura, hamirpur uttar pradesh

Guest Author: SANJAY23 Jul 2015

I want to set up a business in villages to carter to the farmers in various location in Tamil Nadu, Karnataka and Andhra Pradesh. I now supply hybrid seedlings directly to farms and am looking to set a retail chain with the main focus on helping the farmers. If you or anyone has the experience can you suggest what type of items that will supplement my seedling business and help the farmers, which can be sold in the retail outlets. It should be items that farmers have difficulties getting through normal channels.

Guest Author: sesha09 Sep 2015

A grocery shop like business in a small town is a good business idea.

Guest Author: kiran13 Sep 2015

Dear sir,
I want to start a small industry in rural area with a capital of around 20 lakhs.
Please help me out with any suggestions.

Guest Author: Narsee Dhaked18 Sep 2015

I want to start manufacturing business in my village. Please tell me what is best. Also inform about loan, documentation etc. My capital is Rs. 10 lakh.

Author: Jasbir singh30 Oct 2015 Member Level: Bronze   Points : 2

I want to start a factory of corrugated paper boxes. I decided to start the work in rural area, I have land in village. Our village is away from city so most of the people are poor because they dont have opportunity for work in factories. So I want to help the needy and want to become the way for their earning. Kindly suggest what help I will get from government.

Guest Author: Soumya ranjan Deo19 Dec 2015

I am from Odisha. I have been working in private companies with very low salary. However, I have saved some money. I need some extra money to start my own business. I have property, but how can I get cash from it? The banks are denying loans. Can I get help from NABARD?

Guest Author: Matthew Biu11 Jan 2016

Thanks for the experiences, As a reader from another part of the world, I am a youth who live by myself in the rural setting in Solomon Islands and I want to start a small cash earning project (just to keep me survive) but every time I tried some thing or even just mention some thing worth trying I always get the comment that others had tried but failed. Where can I get the motivation.

Guest Author: ARAVINDRAJ.S05 Apr 2016

I would like to start business in a rural area. Can you give business ideas and suggestions? Even foreign company as an investor would be good.

Guest Author: ashwanth07 Apr 2016

I want to do some small business. Can you please give me any idea? I am from a small village and I want to start a small industry at home like candle/chalk piece manufacturing.

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