Are you an inhabitant of small town or village and willing to start your own business for the development of rural areas and also for earning profit? If yes, then this is the right place for you as you will get to know about 20 best profitable business ideas meant for villages and small towns. There are number of profitable business ideas in India but in this post I have drafted top 20 best businesses anyone can start with low investment in rural areas.

Paper carry bags making-

In recent times, it is another worthwhile business idea as the entire world is looking forward to ‘go green’. The paper bag making industry is enhancing more now- a- days. If you have interest, skills and setup of your own, then you may try this business in rural areas. You need to register your business and invest on purchasing equipment and machines for cutting, printing and folding paper bags. This business is very profitable to start in villages and small towns because of low labor cost.

Jute bags making-

One of the best eco- friendly business ideas is jute bag production. Jute or ‘the golden fiber’ is grown by farmers of rural areas and is bio- degradable along with high cash value. If you buy raw jute from the peasants and start business, then it will bring profit to them as well as you. You need to invest on acquiring technical skill, get government registration, purchase equipment, man- power, etc. Read more in details

Agarbatti making business-

From year 1990s to 2017, the demand of incense sticks or agarbatti is huge in domestic and also in international market. As agarbatti production industry is one of the traditional industries and is required on a regular basis for various festivals, so you may start your own agarbatti making business too. It is a profitable and small business idea and need to invest on raw materials like charcoal powder, aromatic essence, etc., compliance for business, machinery, man power, etc. Many small scale agarbatti manufacturing center are located in small towns and villages which are backed by ITC for production of agarbatti for Mangaldeep brand. This is very profitable business for small towns and profit margin is around Rs 12 per kg of raw agarbatti. Read more

Drinking water treatment plant-

Inhabitants of rural areas usually suffer from water- borne disease like typhoid, diarrhea, etc. To gift them top- notch drinking water after treating them in treatment plants will not only help them avoid such disease but also bring you huge profit. A maximum fraction of your investment will be for enlisting man power, machineries, etc.

Fish farming business-

An entrepreneur who wishes to make money from the popular agriculture industry may start another profitable business of fish farming. You will get a huge market for fish due to increased population and also because consumption of fish is increasing with each passing day. Small towns and villages have large ponds and natural lakes for assisting fish farmers. For getting started, you just need ponds or tanks, space, capital for fish food, fishing nets, etc. The ROI will increase as your market will expand.

Beauty salon-

Another great option for individuals who are creative and charming is opening a beauty parlor or family salon. It is true that people who survive in rural areas do not have the opportunity to get such professional beauty service. So, you may exploit this potential niche. You need to invest on your own certified training for becoming a professional beautician, promotion of salon, purchase tools, creams, lotions, chairs, mirror, etc. You also have to rent or buy a space. This is very profitable business idea for villages with one time investment.

Fitness center-

Individuals who are cautious about their health and know the benefits of exercise will favor your idea of opening a fitness center or a gym. Here you have to apply a trick. Setting up a fitness center based on the local interest of your community will bring in profit. For example- if a maximum number of your town’s people love yoga, then it will be a wise decision to include yoga studio inside your gym. Investment includes purchasing gym equipment, a huge space, give advertisements, etc.

Clothing and accessories-

A primary luxury which small towns are deprived of is decent shopping. It does not mean that one have to purchase clothing from shopping malls. Usually, individuals living there have to drive long distances for buying basic necessities. So, if you open a clothing store or boutique, then within few days your business will prosper with unexpected return on investment as people will get an easier way of getting their basic needs in villages and small towns..

Food business-

As food is one of the primary necessities of all human- beings, thus small town or village people also need that. If you choose this business idea, then you will have various options open in front of you. You may open a restaurant, ice cream and coffee shop, bakery, etc. For this, you need to have a sound knowledge on cooking and baking. People of almost all rural areas will love this idea of yours especially teenagers. To start, you must invest on regular and fresh raw materials, promotion of your business, hire experts for better sale, etc. Read more about restaurant business

Computer training center-

In today’s world, maximum services require sound computer knowledge, but inhabitants of rural areas possess least functional knowledge about computers. So, they fail to get good jobs. If you utilize this opportunity to train all men, women, married, unmarried people of your town about computers, then it will be beneficial for you and also for them. For this profitable business idea, you must be proficient in dealing with computers and invest on seeking government registration, computers, advertisement, etc.


All individuals possess the right to get proper education. If you hold a vision of educating the mass of rural areas, then opening a school will be the best option. Starting a school in a village or small town might not guarantee immediate ROI in India. Thus, you must patient for the growth of your investment. Investments on startup cost, insurance costs, utility bills, books, electricity cost, etc. might be high, but the return will increase with time. For this, you have to aware people about the requirement of education.

Furniture making-

If you have skills in creating wood furniture, then you could opt for your own furniture making business. All you need to do is invest on sources of getting wood and machinery, then make innovative products for selling in rural as well as urban areas. You may also repair furniture of other materials for increasing customers.

Catering business-

Generally, villages do not have proper catering service providers for supplying foods in occasions. Now, if you are interested in investing on skilled cooks, service- boys and also have good knowledge about this service, then you may choose this profitable business idea. Read more about catering business

Electronic equipment repairing-

The task of an electronic equipment repairer is to fix various types of electronic gadgets or machines, from mobile phones to kitchen appliances, etc. Generally, village people have to come to a city for fixing such equipment. Thus, if an individual knows ways of repairing electronic equipment, then opening a repairing business will help him or her get a return on investment. This idea will be helpful to you and also to the people of rural regions.

Video gaming center and internet cafe-

For starting an internet cafe business, you will require an internet connection, networking hardware, client computers, server computers, adequate space, etc. The startup cost will depend on the number of services and client computers you are willing to offer your customers. For increasing membership, you may allow multi-player games, give discounts and also sale different items like juice or coffee for increasing profit. This is best evergreen business ideas for villages and small towns in India.

Mobile phone repairing and accessories-

With the advancement of technology and communication, mobile phones have become one of the daily necessities of people, even those in rural areas. Though mobile retailer shop is available, yet repairing them and selling spare parts or other accessories like back covers, glass covers, chargers, headphones, etc. is not easily available. Thus, you may use this opportunity to open a mobile repairing business with small capital and gradual good return.

Railways/flights ticket booking online + photo copy/scanning/printing-

It is really tough for small town people to book railways and flights tickets without visiting their nearby city. Online reservation of tickets is widely accepted now- a- days, so you may open a business for providing assistance by booking all sort of tickets online. Besides this, you can also open another counter within the same space for Xerox, scanning and printing. It will bring you huge profit on your investment as you will always have numerous customers especially students for getting photo copies of their reference books or notes and printing pictures for project work.

Farming related businesses

Farming and agriculture are the two mostly accepted professions of rural people. If you are willing to start a business related to farming and receive good return on investment, then you may opt for goat farming, dairy or poultry farming. You need to invest on and rear cows, goats, hens, ducks, guinea fowls, etc. for starting this business. Your business will develop by maximizing the supply of chicken, eggs, milk, etc.

Also Read: How To Start Goat Farming – Business Plan

Also Read: How To Start Dairy Farming – Business Plan

Organic farming-

Usually organic farming business was practiced on small and family- run farms. But, the demand of organically grown foods and are increasing and thus people are finding an interest to invest in large lands for carrying out organic farming. Even you may choose this idea as the growth and success rate of this business are growing steadily.

Rice export within India or other countries

Rice being the staple food of India is one of the highly needed food items. You may start a business of exporting rice within and outside the country. For this, you must contract export vendors of neighboring cities. You will get a sound profit and return on your startup investment.

It will be easier for you to start business in small towns and villages as you will require a bit smaller capital than the cities. Organizing your business will be easier in rural areas is easy where individuals know one another.

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