What are Some Startup Ideas for Indian Villages?

. 6 min read
What are Some Startup Ideas for Indian Villages?

Do you think that only the urban zones in India are best for setting up a business? Then, you are not right. The rural parts cover a significant portion of India's population, and as one of the residents in rural regions, you can find business opportunities. The business infrastructure in rural areas may be different from that of urban ones. Still, you have a chance to achieve success in a business established in villages and small towns. Food businesses are immensely profitable in Indian rural regions. However, you will find several food business ideas that enable you to earn high ROI.

Setting Up a Farming Business in a Village

Farming is one of the common ways of earning money in Indian villages. However, while choosing a farming business, you can find several options, like livestock farming, organic farming, coffee bean farming, and chilli pepper farming.

1. Organic farming

Nowadays, there is a trend of consuming organic foods, as they do not have insecticides, harmful ingredients, and pesticides. The best fact is that you do not need a high investment in organic farming. You only need a piece of land and quality seeds. With your effort, knowledge, and skill, you will find higher yields. Indian banks also provide loans for starting an organic farming business.

However, you have to take care of the post-harvest processing system and ensure proper organic food management. In some cases, contaminated water from the neighbouring farm can affect your farming activities.

While searching for different organic farming options, you will find mushroom farming is the most profitable one. But, you must know the right technique for growing mushrooms. You need the raised platforms to cultivate mushrooms and earn profits.

2. Livestock farming

Livestock farming is one of the profitable businesses, as the cost for by-products is much higher. To start the business, you need to buy hens, cows, ducks, and other livestock. The GDP growth of the livestock farming sector is increasing faster than that of other agricultural sectors.

However, this livestock farming sector has different categories:

animated characters showing dairy farming concept

3. Dairy farming

A lot of Indian farmers earn their livelihood with dairy farming. Dairy products like cheese and yoghurt are available at a high price. That is why you can start your dairy farming in any Indian village.

In the urban zone, there is not much space to raise buffaloes and cows. However, there is a trend among villagers to raise cattle. They also know the right technique to make their business successful. Moreover, they partner up with milk product manufacturers to sell their milk.

4. Fish farming

When your locality has ample water bodies, you can invest in fish farming activities. Look for lakes and ponds in nearby places to start your business. However, artificial tanks are also the perfect choice for a fish farming business. But, the essential task is to study the local market before starting your business. Nowadays, there is a trend of doing ornamental fish farming, and you may earn a lot from this business.

5. Pig farming

It is one of the most profitable options for those who like to raise livestock. You must have knowledge about different breeds of pigs to make your piggery successful. You may also grow your small business and take it to the global level by selling pigs to the markets in other countries, like Canada, Europe, and the US. Although pigs are mostly used as food, their skin is one of the raw materials for the cosmetics and clothing industry.

6. Setting Up a Grocery or Speciality Food Store

You can find very few competitor grocery stores in villages. Some of us overlook the importance of opening a grocery store. Indian residents in villages cannot avoid buying groceries, as they are essential in their daily life. With little effort and proper calculations, you can make your store highly profitable. However, another option for you is to sell speciality foods, like cheese, chocolates, candies, and soft drinks.

One thing to note is that speciality foods can cost higher than other foods. Consumers in rural regions may not like to spend these items regularly. That is why you can distribute your speciality foods to shops in urban areas and earn high revenue.

7. Bar and coffee shops

You may find a bar or a café in small towns, but you may not always get lots of customers. The best trick for you is to combine a coffee shop and a bar. You may sell coffee in the morning and serve wine in the afternoon. It is a unique concept, as coffee consumers like to drink their favourite beverage in the morning, and you can take advantage of it. However, the right ambience is vital to attract customers to your café-cum-bar facility in rural regions.

8. Fruit juice shop

It is one thing to sell fruits in rural regions. However, to increase your sales, it is better to sell fruit juice. Lots of Indians like to drink healthy fresh juice in the morning. It does not cost much to build a fruit juice store, as you may need only Rs.2000 for the proper setup. Invest in a juicer and buy different fruits, like oranges, apples, papaya, pears, and watermelons. Purchase some disposable glasses to serve your customers with drinks. By selling 100 glasses of fruit juices, you may earn Rs.200 to Rs.250.

9. Ice cream store

One of the best options to get self-employed is to build an ice cream store. Have a stock of ice cream of different flavours to attract lots of customers. However, it is a seasonal business, and you will not find orders in the winter season. You may start your business with roadside carts and grow it slowly to build a big ice cream parlour in the locality. The best fact is that an ice cream store can target consumers of all ages.

An ice cream store needs almost 400 to 500 square feet to install equipment, refrigeration systems, and other items. You may need at least Rs.5 lakhs to open an ice cream store.

Moreover, you have to employ proper staff to prepare high-quality ice cream. Based on your workers' performance, you may find a difference in sales.

animated character running the sweet shop

10. Sweets shop

With some resources, patience, and time, you can build your sweets shop. However, choosing the right location is essential to get more traffic to your sweets shop. It is better to avoid sites where the competition is high due to the presence of multiple sweets shops. Check out the trend of local sweets and ask your staff to prepare the best products. But, sweets do not have a long shelf life, and you need to prepare sweets every day based on the sales rate. Let your customers buy fresh sweets from your shop. To grow your business, you can take the shop to the digital world and employ delivery staff to widen your business's reach.

11. Setting Up a Bed and Breakfast or Homestay Business

You may have heard about the paying guest houses in India. The bed and breakfast business is about providing accommodations and foods to houseguests. You will get paid every month for this service. A small inn with an accommodation facility will help you to earn high revenue.

Also Read:

1) What Are the Small Business Ideas for Big Cities?
2) What Kind of Small Business Can I Do in A Rural Area?
3) What Business Can I Start in a Small Town in India?
4) What Is Most Important to Small Business Owners?


Q. Do I need registration to open a small business?

Ans. Registration is not mandatory to start a small business in India. However, you must have a tax license to avoid legal issues.

Q. How do you define a small business?

Ans. When the investment amount is between Rs.25 lakh and Rs.5 crore, we call it a small business.

Q. How many employees do small businesses have on average?

Ans. In most cases, small businesses have not more than 500 employees.

Q. Can I obtain a loan for my small business?

Ans. Indian banks have small business loan schemes. However, you have to know the eligibility criteria to obtain the loan. Lenders may ask you to inform your business details and annual revenues.

Q. Can I receive the loan before opening the business?

Ans. You may need to provide collateral when you cannot pay the down payment for the loan.