Best Business Ideas In Rural Areas In India [Village Business Ideas]

Table of Contents

1. Business Ideas For Small Villages

2. Which Business Is Best For Rural Area?

3. Home Business Ideas In Villages

4. Key Takeaways

1. Business Ideas For Rural Areas/Villages

Village Business Ideas

If you're looking for profitable business ideas for villages, then this guide will definitely help you out!

Starting up a Business is an extremely daunting task in itself, and then growing that business to make it sustainable and profitable, takes a lot of effort and time. It is almost like nurturing a baby into a fully grown individual. As if this was not hard enough, in a country like India, where a major percentage of the population resides in villages, with very different infrastructure compared to cities, it is a mammoth challenge to overcome.

Every single business has its own set of infrastructure requirements and its own set of needs. A lot of these will also be dependent on the physical location where a person has set up the business. As a result, trying to grow start-ups in the villages of a country like India will have its own set of challenges. Also, every business will need a significant amount of investment to launch itself off the ground and so you need to keep in mind the factors that will affect you in Indian villages so that you can acquire enough investment to cover the costs incurred to tackle those unique issues.

However, Indian villages can also be lucrative locations to start a business. One major reason for that being there are fewer strict regulations and paperwork involved, in starting a business in rural areas. They also present a number of attractive business opportunities, like the majority of rural India is responsible for expanding the agricultural sector and in turn fuels the National Economic Growth. So start-ups can have ample business opportunities to capitalise on in villages, which they can grow and flourish relatively quickly.

2. Most Profitable Business In Rural Areas In India

Starting a business in villages could be challenging sometimes. However, with proper market research and a thorough understanding of the users, you can make your business successful. So let us check out a few start-up/business ideas that can be successful in Indian Villages:

1. Starting an Educational Institution

The state of education in the rural areas of India is extremely poor, making it a perfect opportunity to establish a start-up in Indian villages. Investment is always an important factor, however since the cost of materials and labour is far cheaper in the villages, you can complete your construction at far lower costs than in urban areas. But, you absolutely have to ensure that the quality of education must be on par with the institutions in the developed cities. If the education you provide is immaculate, you will develop a strong sense of goodwill among your students and in turn their parents. That is when they will spread the word about your institute to their family and friends and more and more students will start enrolling, creating a snowball effect. Arguably, “Word of Mouth” is the most effective form of advertising for any small-scale business when it comes to Indian villages. Online teaching is also an option, making this one of the easiest and most profitable start-up ideas for Indian villages.

2. Farming Equipment and Products

Farmers mostly fill villages, and it is a “no-brainer” selling farming equipment and products will be an obvious choice for start-up ideas regarding Indian villages. You can provide Seeds, Pesticides, Food products for farm animals, fertilisers, and heavy farming machinery, just to name a few.  Purchasing these items from wholesale dealers will allow you to buy them at considerably cheap rates so that you can keep a good profit margin. However, always ensure that the items that you sell are of the best quality available. Village communities tend to stick together, so if you can establish a strong sense of goodwill, more and more farmers will start acquiring their necessary stock from you. You can also go one step further, by showing the villagers the proper ways to use several products. For example, you can distribute flyers that portray the proper techniques of spraying the pesticides and fertilisers that they buy from you.

Also Read: How to Start An Organic farming Business in India?

3. Transportation

Finding proper transport to travel is a huge problem in villages. A large percentage of transportation in villages simply has no organisation or structure and thus this can be the perfect business opportunity. The basic cost for setting up this business is the cost of acquiring the vehicles, which one can also get second hand. One thing  that must be kept  in mind is that the income level of the entire population in Indian villages is not very high. So you must make sure that the fares that they pay to avail of your transportation service(s) are not exorbitant. They have to be reasonable to fit the spending power of these individuals. There are so few modes of transport available, that this is almost an untapped market.

Also Read: How to Start Private Bus Transportation Business in India?

4. Selling farmers’ yield in cities

There is a huge number of farmers in the Indian villages who sell all their produce to large-scale distributors and agencies. These parties buy off everything the farmers have and pay them almost negligible amounts of money and then later sell that same product for high prices. So the farmers always make very little money, and if they have a bad yield in a year, owing to problems like low rainfall, etc., they receive absolutely no money. As a result, farmers soon find themselves trying to pay off insurmountable debts, which pushes a shocking percentage of the Indian farmers towards taking their own life. A study conducted by the National Crime Records Bureau or the NCRB showed that no less than 10,281 Indian farmers committed suicide in 2019.

But, if you sell their yield, then the farmers get the proper price for all their yield and they do not have to take out exorbitant loans to sustain themselves and their work. Moreover, since your product will be directly sourced from the villages, you will have a high quality of produce on your hands, which you can sell at the high rates of the cities and make a good profit. Finally, since despite giving the farmers a fair price and making a considerable amount of profit, you will be able to sell the produce at slightly lesser rates than other dealers in the city will. This will allow you to quickly garner a loyal customer base in the cities.

5. Selling items that are hard to get

There are lots of items that are almost completely unavailable in villages. As a result, if you start selling them you will have a monopoly over the markets of all those products. These items can be some unique type of crop and/or grain, electronic and automated machines, etc. Indian Villages are slowly progressing and with technological advancements, the villages are also witnessing a lot of development. For example, with almost all Indian Villages now having electricity, selling electronic gadgets like mobile phones and computers, can be a game-changer. Therefore, all you need to do is find out the unique selling points of these items and you will easily be able to expand your business, especially if you provide High-Quality products, at cheaper prices.

3. Home Business Ideas In Villages

The majority of India's population resides in villages and so does the monetary benefits. Starting a business is no rocket science but implementing and executing it is the main game. These are some of the best village business ideas that can be started with low investment in India.

1. Candle Making
2. Aggarbattis
3. Pickles
4. Buttons
5. Tea
6. Cotton buds
7. Papad
8. Disposable plates and cups
9. Jute Bags
10. Paper Bags

Also Read: Best Home Business Ideas

4. Key Takeaways On Business In Villages

Indian Villages, despite having their own set of hurdles can actually be nice locations to base your start-up. The first thing you must do before trying to set up your business is to calculate the amount of capital investment that you will have in hand to work it. Also, you need to properly research the rules of the land and the tertiary influences which will govern how much money you will need for setting up and how you must spend that capital. Once you put those pieces of information together, you will be able to figure out which particular business opportunity you should target for your start-up. Businesses in Indian villages have a lot of potentials, you just need to be aware of the potential(s).

Also read:

1) How To Open A Computer/Laptop Showroom?
2) 25 Top YouTube Channels for Small Business Owners
3) What Are Some Good Startup Ideas?
4) How Effective are Posted Flyers for Early Small Business Marketing?
5) Scope of Farming in India

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FAQs on Village Business Ideas

Q. Which business is best in Indian villages?

Ans- These are some small business ideas that can be started in a small town or a village in India:

• Cloth Manufacturing or Clothing Store
• Grocery or Kirana Store
• Bike/Car Servicing or Repairing
• Poultry Farming
• Livestock Farming
• Coaching Services
• Tuition Classes
• Flower Farming

Q. What is the best business to start in village?

Ans- These are the top 11 successful business ideas for small towns:

1. Milk Centre or Daily Parlour
2. Small scale industrial manufacturing units
3. Livestock farming
4. Kirana Store
5. Vegetables & Fruits Vending Shop
6. Seeds & Fertiliser Storage shop
7. Electronics Store
8. Mobile repairing & accessories store
9. Doorstep water delivery service
10. Diagnostic centre or dispensary
11. Garments Store
12. Poultry Farm

Q. Which business is more profitable in village?

Ans- Organic Vegetable Farming or Production is the most profitable business in the village or rural area. Organic farming's demand has drastically increased over the years especially in the urban sector, hence, with a good supply and a proper vendor you can incur handsome profits.

Q. Which business is best for rural area?

Ans- These are some of the most profitable business in a rural area in India:

• Poultry Farming
• Auto Repair Shop
• Freelance Writer
• Fishery
• Organic Produce
• Milk centre
• Drinking-Water Supply
• Flour Mills
• Kirana Stores
• Oil mills
• Threshing Machine
• Fertiliser Wholesaling
• Flower Farming

Q. Which business is best in Indian villages?

Ans- These are some of the best small business ideas that can be started in a small town or a village in India:

1. Poultry/Livestock Farming
2. Car/Bike Servicing
3. Clothing store/manufacturing
4. Tutoring Service
5. Flower Farming
6. Grocery or Kirana Store

Q. Which business is best in small towns in India?

Ans- Grocery/Kirana Store is the best business to start in a small Indian town. Every household is an avid consumer of grocery products, hence, opening a 'Kirana' store is one of the easiest small businesses in India. It requires low investment depending on the location and size of the store.

Q. What does every small town need?

Ans- These are some of the businesses every small town needs:

• Grocery Store
• Automobile Repairing Stores
• Pharmacy
• Hardware Store
• Bakery
• Ice cream parlour
• Movie theatre
• Gas Station
• Convenience Store
• Hospitals

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

Ans- Fertilisers and Seeds Storage Store is the best business to start in a village area with low investment. Purchasing wholesale could be beneficial in the beginning stages of this business. This is the most sought-after business in Indian villages.

Q. Which business is best in lockdown?

Ans- Some of the best businesses to start since the dawn of the COVID-19 Pandemic are:

1. Running a Youtube Channel
2. Online Tuition Classes
3. Doorstep Delivery Services
4. Selling Healthcare Products
5. Food Delivery or Tiffin Services

Q. Which business is more profitable in rural area?

Ans- These are some business best for village area that requires low investment:

• Paper bag Making
• Papad Making
• Hair Band Making
• Ginger Garlic Paste Making
• Coconut Based Business
• Biodiesel Production
• Bedsheet With Pillow Covers
• Bridal Store
• Bakery
• Paper Cup Making
• Agarbatti Making
• Banana Wafer Making

Q. What are the most successful small businesses in 2022?

Ans- This is a list of the top 10 most profitable small businesses in 2022 (India):

1. Courier Services
2. Catering Services
3. Online Tutoring
4. Mobile Shop
5. IT Support
6. Hairdresser Services
7. Website Design
8. Cleaning Services
9. Gardening
10. Legal Services
11. Marketing Services

Q. Which franchise is best in rural area?

Ans- Below is a list of the top 10 best franchises for small towns in India:

• Gayatri Electric Vehicles (Electric Rickshaws)
• Max Food Products
• Brainy Bear
• Vedic Herbal Group
• Bean Here
• Reliable Accessories Pvt. Ltd.
• Himalayan Range
• Luman Industries Limited
• JanaJal
• TinyBots