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With more than 70% of India’s population residing in rural areas, rural India’s economic development is crucial to India’s economic development. Though most of rural India is engaged in farming and allied activities, there are a number of other activities that Indians residing in rural areas can take up to support themselves and their families. In this article, we will go through some lucrative business opportunities for rural India. 

  • Poultry Farming Business

With extensive support from the government and other agencies, the poultry industry is now thriving in rural areas. There is a huge demand for poultry products in the markets which means that this is a lucrative business. Additionally, the low cost of land and human resources in rural areas keeps the cost of running a poultry farm relatively low. 

  • Farming Equipment and Products

Since much of rural India is engaged in agriculture, it’s no secret that there will always be a huge demand for farming equipment and products. With the rise in technological advancements, rural India is now looking to increase productivity by incorporating technology into agricultural practices. Because of this, the demand for farming equipment and products have steadily risen over the years, making this a lucrative market to tap into. 

  • Transportation

An efficient transportation system is crucial for the growth of any economy. A lot of times, rural areas do not have good connectivity which can make them lose out on many opportunities. This is why a transportation agency might be a good business idea if you have some capital. Though this is an investment-intensive business model, the potential for growth is unlimited. 

  • Selling Farmers’ Yield in Cities

Sometimes, people outside our environment value our yields more than those around us. Similarly, a lot of times, many rural products are not of much value to the people in rural areas as it is abundant for them. Whereas, these products are highly valuable for people in other areas, particularly urban areas as these products are relatively scarce in these areas. Moreover, people in urban areas are also willing to spend more money on the same products. Thus, selling your products in cities may be a great idea if you’re looking for a profitable business model. This can include fruits, vegetables, dairy products, handicrafts, specialty snacks and much more!

  • Kirana Store

No matter what happens in the economy, there will always be demand for FMCG and groceries. Opening up a small kirana store can be a great way for you to make some money. This is also an extremely flexible option as you can open up a kirana store with very little capital or with a larger capital. 

  • Medical Store

Another great business idea for people looking for low-risk business ventures that will provide a consistent source of income is a medical store. Medicines and related products will always be in demand, which means that your business makes profits. This might be the perfect business venture for you if you have relevant qualifications.

  • Flour Mill

A flour mill business can be a flourishing business venture in rural areas as people are less keen on purchasing processing flour mixes. Thus, a flour mill business is sure to be successful!

  • Small-scale manufacturing units

A small-scale manufacturing unit is perfect for rural areas as real estate and resources are relatively cheaper in rural areas when compared to urban areas. Opening up a small-scale manufacturing unit is a great idea for anyone that has a small plot of land and some capital. 

  • Clothing store

Another commodity that will always have demand is clothing. Given how essential it is, you can never go wrong with a clothing store, especially if you study the demographics and stock up on clothes for which there is high demand and lower supply. 

  • Fertiliser/Pesticide Store

Given how widespread agriculture is in rural areas, you can’t go wrong with a fertiliser or pesticide store. It is an important part of any farming activity and hence, fertilisers and pesticides will always be in demand, so you can confidently start your business venture. Stocking up on innovative products such as organic fertilisers and pesticides can also be a great way for you to make more sales and grow your business. 

  • Tutor Services

With more and more of the rural population using education as a means for development and economic prosperity, tutoring services continue to grow rapidly. Hence, if you are qualified in a subject matter, consider opening up a tutoring business. This is a great option for anyone that is lacking funds but has the skill set required as you can start a tutoring business from the comfort of your home itself.

  • Cattle Feed Business

Another common economic activity in rural areas is cattle rearing. Cattle farmers are constantly looking for feed for their cattle. Hence, cattle feed business is a great business venture to look into. It’s expected to grow quite rapidly as there are many government subsidies and concessions given to cattle farming and allied businesses to boost its growth. 

  • Farm Rental Equipment

Since farming equipment can be quite expensive, farmers often prefer renting them when they need them instead of buying such equipment. This opens up a lucrative business opportunity for anyone that has some capital and adequate space to store these equipment. 

  • Milk/Dairy Centre

There is both demand and supply for milk and dairy products in rural areas. You can either open up a dairy centre that collects milk and other dairy products from local farmers, processes them and then sells it in the rural market itself or you can go one step further and sell it in the urban market. Though selling dairy products through the urban channel can be quite expensive and extensive, it is also extremely lucrative. 

Benefits of Applying for Business Loan in Rural Areas in India

Here are some of the benefits of applying for a business loan in rural areas:

  • There are a number of governmental and non-governmental schemes that rural Indians can access which will give them favourable terms.  

  • There are a number of collateral-free loans available that entrepreneurs can take advantage of. 

  • If you choose a government-backed loan, then your interest rate will be significantly lower and you will also be able to access many benefits that are offered by the government. 

  • Business loans’ application processes are very simple, take very little time and require minimal documentation. 

FAQs for Business Ideas in Rural Areas

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

Yes, it is possible to get a business loan in villages or small towns with Bajaj Markets’s fully online application and disbursal process.

What businesses are more profitable in rural areas?

Businesses that cater towards the needs of the rural population tend to perform well in rural areas. This can include kirana stores, pharmacies, flour mills, pesticide shops, etc.

Is income from fisheries/poultry income-tax free?

No, income from fisheries/poultry will be treated as business income and is taxable once it surpasses the basic exemption limit.

Do banks provide loans to start the flour mill?

Yes, you can take a business loan to start a flour mill business. 

Is there any support provided by the government for starting a business in rural areas?

Yes, there are many loans that are government-backed and collateral free. These loans are offered to rural entrepreneurs to boost the rural economy.

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