With the ‘Atmanirbhar Bharat’ push by the Government of India, today, rural India is also bitten by the entrepreneurship bug. So, if you are looking for low-cost small town business ideas, we have you covered.

Let’s look at some small business ideas for rural areasin India that are less about hefty initial investments and more about collecting profits.

Small-scale manufacturing units

You can set up a small-scale manufacturing unit for products such as candles, jute bags, incense sticks, cotton buds, tea, matchboxes, papad, buttons, packaging products, pickles and more. Disposable products like paper plates, paper bags, paper cups, etc., are also in high demand.

Such production units require low investment as you can start one in spaces like a shed or a small plot of land. Apart from the raw materials, you will need equipment, power supply, water connection, and skilled personnel to start the manufacturing process. You can use a business loan to easily finance your initial expenses and get your venture off the ground. 

Grocery store

Despite nearly 70% of the Indian population residing in rural areas, there aren’t enough well-planned retail outlets. Therefore, a grocery or Kirana store can bring in good profits for you.

After getting a license for your shop, all you need to do is lock a location, set up your store, pay rent and utility bills, and regularly fill the inventory. Gradually, as your shop grows, you can hire more employees to help you sell to a larger customer base.

Additional Read: 7 Small Business Ideas in India after the Covid 19 Pandemic

Agricultural products and equipment

Selling farming products and equipment is one of the smartest small business ideas in villages. This is because a majority of rural households rely on agriculture for earning their livelihood. You can start selling pesticides, fertilisers, seeds storage, bactericides, animal feeds, insecticides etc.

Remember, it is necessary to get a license before selling these products. Similarly, offering farming equipment like ploughs, spreaders, heavy machinery, seeders, etc., can also prove highly lucrative.

Flour mill

Rural areas have an abundance of raw materials for a flour mill. You can set up a mill near farms with easier access to fresh grains, including wheat, oats, corn, sorghum, barley, grams, etc.

A flour mill business will require funds for land purchase, renting or buying a building, securing machinery, and licensing and registration charges. You will also need working capital to finance the staffing, raw materials, rent, utility bills, marketing, transportation, distribution, and additional administration costs.

With business finance, you can easily tend to these expenses and cultivate a steady cash flow. Nowadays, you can check the business loan eligibilityof your preferred lender online before approaching them.

Additional Read: Small Business Ideas with Low Investment and High Returns

In conclusion

If you are excited about a business idea but lack the capital required, turn to Tata Capital! We offer multi-purpose collateral-free business financing.

Get business loan interest rates starting at just 19% and amounts as high as Rs. 75 lakhs. We promise quick processing, minimal documentation, and structured EMI plans. What’s more, you can secure a flexible tenure of up to 36 months.

Visit our website and kickstart your business by applying today!

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