Village Business : Best Business Ideas for Village, Rural Business Ideas in India

In rural areas, where community ties run deep and resources are abundant, village business ideas thrive on ingenuity and local needs. From agricultural ventures like organic farming and livestock rearing to cottage industries like handicrafts and traditional textile production, the possibilities are endless in small business ideas in villages. Small-scale food processing ventures such as dairy products or artisanal food items cater to both local demand and niche markets.



Aatmanirbhar Bharat, the idea propagated and supported by the Government of India is all about becoming technically and financially self-reliant rural business ideas.

With more than 70% of the population residing in villages and small towns, the opportunities for small business ideas in villages are more in these areas. As most of the businesses in the rural hinterland are directly or indirectly dependent on agriculture or a related sector, there are a number of opportunities available to explore and flourish with time.


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Explore Best Business Ideas For Village Here

If you’re exploring opportunities for rural entrepreneurship that can yield a steady income, consider a range of village business ideas at your disposal. Among the array of options, ventures tied to agriculture, livestock, handicrafts, tourism, and education stand out. Leveraging local resources, talents, and market needs, you can embark on a small-scale enterprise within the village milieu. For instance, cultivating organic crops, tending to poultry or dairy herds, crafting pottery or baskets, providing homestay accommodations or guided excursions, or delivering online courses are all viable avenues to explore. If you’re seeking financial assistance to kickstart your venture, consider exploring the possibility of a pottery loan to support your pottery-making enterprise.

These are some of the rural business ideas that can be profitable and sustainable in the long run. You can also explore other opportunities based on your interests, expertise, and location. The best business in village area is the one that suits your needs and goals. Some of the small business ideas in villages that can be explored in the small towns are discussed below for entrepreneurs to take a call.

Some of the business ideas for new-age entrepreneurs in small towns/villages are:

1. Retail Store

With the majority of the population residing in rural India, there is a shortage of well-planned retail outlets in these marked areas. The outlets can be of different types that cater to a different sections of the population. One such option that is very easy and practical is opening a Kirana store.

The Covid crisis has proved the resilience of the Kirana shop owners and the adaptability to learn and change according to the new scenario. It is a very feasible option and is never out of demand provided the Kirana store is opened at the right place, has good customer service and is well stocked (supply chain). The other shops that can be opened in the rural hinterland are:
  • Sweet shops
  • Tailor shop
  • Electronics shop
  • Saloon shop
  • Cosmetics shop
  • Two-wheeler/four wheeler mechanic
  • Fruit shop/juice shop
  • TV/Radio/Mobile mechanic
  • Electrical/plumber shop

Before opening the above-mentioned shops, it is necessary to have a certain level of expertise. It is necessary to have some skills and knowledge to open a shop. However, one benefit of opening a retail outlet is, that it requires less amount of time to start the business and it is ready, making demand for such essentials in every place.

2. Flour Mill

Another idea that can be worth exploring is the establishment of a flour mill. In rural areas there is no paucity of raw material(cereal) for the flour mills, moreover, people don’t purchase the packed flour from the markets as visible in urban areas. It is a very feasible and profitable business if you grind other grains along with wheat like corn, oats, barley, sorghum, and spices like turmeric, chilli, etc.

The flour mill can also supply the products to nearby cities and towns at profits. It is a good business and requires limited money but a good electrical connection to start and run the business.

3. Small-scale Manufacturing Units

Rural areas and small-town are ideal locations to start small-scale manufacturing units to cater to the demand in the local area as well as supplying products to nearby towns and cities. These manufacturing units can be for various products like:
  • Agarbatti
  • Candle/ matchbox
  • Paper cup/paper plate
  • Packaging products
  • Disposable bags, etc.
These products have a large market in urban areas, whereas the raw material is in abundance in rural areas to become a profitable business with quick returns.

4. Clothing Store

Traveling to big cities for buying clothes on special occasions or for daily needs is very common in villages. Starting a clothing store with good brands, fabrics, and variety is a sure-shot way to success provided the owner has good contacts from the garment suppliers and the supply chain is intact.

If you can provide the latest fashions, designs, and styles of clothes, there will be a good demand for the products in the villages and small towns. You can also arrange tailoring services and provide handmade products for the clients at the store.

5. Poultry/live-stock Farming

The poultry farming business is growing at a rapid pace with active support from government agencies. Moreover, it is not capital-intensive and does not require much land. However, a person must have some experience to run the business. There is a huge demand for poultry products in rural and urban areas helps in reducing the return on investment. Initially, you can start with a limited number of birds and also the quality and variety of birds, and with time can increase the business. Along with the local demand, you can advertise and sell the meat/eggs in cities. You can also take ideas from our poultry farming business plan guide.

6. Fertilizer/pesticide Store

As the rural economy is largely based on agriculture, it makes perfect economic sense to start a fertilizer/pesticide business. It is necessary to apply for a license before starting the business. Moreover, you can also keep seeds along with fertilizer and pesticides.

7. Tutor Services

The shortage of well-qualified teachers in rural areas is a big problem and can be a good business idea to start a tutoring center with eligible teachers employed at the center. It will not only provide employment to qualified local youths but will help people to find a good teaching institute closer to their home for children. The business doesn’t require much capital and space, and, is a good business opportunity to explore, provided you have the qualification and necessary skills to run a center. The tutoring service can start with limited manpower but will grow with time.

8. Milk/dairy Center

Due to the abundance of milk in rural areas, running a milking center is a sound business idea. It can collect milk from individual houses and supply it to dairy farms. The fund requirement to start the center is less, however, the person must be qualified to run the center. Collection and supply of milk are possible only by tying up with a dairy farm. To start a local dairy project, one needs funds that can be availed from different financial institutions including banks, and NBFCs like Lendingkart.

9. Organic Vegetables/fruits

Organic fruits and vegetable market is growing rapidly and living near villages and small town presents a sound business opportunity to start growing and marketing the produce. However, it is not easy to start a business and requires farmland or a contract with farmers to grow the produce. Moreover, these are perishable goods and require refrigeration for storage. It is advisable to start the business closer to vendors for less transportation and logistic charges.

Business Plans
  • Business Plan
  • Restaurant Business Plan
  • Bakery Business Plan
  • Hotel Business Plan
  • Agriculture Business Plan
  • Transport Business Plan
  • Coffee Shop Business Plan
  • How To Start a Kirana Store In India?
  • How To Start A Garment Shop In India?
  • Tea Shop Business in India
  • Poultry Farm Business Plan
  • Cold Storage Business Plan
  • Agarbatti Making Business Plan
  • Catering Business Plan
  • Salon Business Plan
  • Laundry Business Plan
  • Petrol Pump Business Plan
  • Boutique Business Plan

Small Business Loan

A small business loan is a customized loan to meet the financial requirements of a small/medium size enterprise. It is collateral in nature and is offered by all financial institutions to eligible borrowers.

Benefits of small business loan:

Some of the benefits of the small business loan are:
  • There is the flexibility to select from different loan schemes. Government schemes such as CGTMSE even doesn’t need collateral or a third-party guarantee.
  • There is flexibility in the repayment tenure and depending upon convenience, one can select the EMI option.
  • The rate of interest in government-backed schemes is low.
  • It is easy to avail of the loans and the loan amount disbursement is quick.

Eligibility criteria of a small business loan
  • The eligibility criteria to get a small business loan is:Age: Minimum – 21 yrs, Maximum – 70 yrs
  • Nationality: Indian nationals
  • No case of default with any financial institutions
  • Bank statements for the last 12 months
  • Income tax returns for the last two years

Documents required to avail of a small business loan:
  • Duly filled loan application form with KYC documents
  • Complete business plan
  • Identity proof: PAN card, Aadhar card, Voter ID, Driving license
  • Residence proof: Utility bills, PAN card, Ration card
  • Business registration documents
  • Income tax returns for the last two years
  • All kinds of licenses and required permits


Procedure to apply for a small business loan

The procedure to apply for a business loan is very simple and is defined below:
  1. Check the eligibility criteria before applying for a small business loan.
  2. Fill in the application form and submit it with all the required documents mentioned above.
  3. Once the documents are verified after you submit them, the loan is sanctioned and funds transferred to the borrower’s account.

Frequently Asked Questions

Is it possible to get a business loan in villages or small towns?

Yes, you can apply for getting a business loan from any bank in these areas. The rules and regulations are similar to the ones applied in the urban centre.
  • What are the things to keep in mind before starting a business in villages or small towns?
  • What businesses are more profitable in rural areas?
  • Is starting a gift shop a profitable business?
  • Does starting the poultry business requires a license?
  • Why do we need insurance for poultry business?
  • Does the income from fisheries/poultry income-tax free?
  • Can one get a business loan for poultry farm?
  • Does banks provide loans to start the flour mill?
  • Is there any support provided by the government for organic farming?