The need for and growth of rural industries has become essential in a country like India because of the following reasons:
1. Rural industries generate large-scale employment opportunities in the rural sector as most of the rural industries are labor intensive.
2. Rural industries are capable of checking rural urban migration by developing more and more rural industries.
3. Rural industries/entrepreneurship help to improve the per capital income of rural people thereby reduces the gaps and disparities in income of rural and urban people.
4. Rural entrepreneurship controls concentration of industry in cities and thereby promotes balanced regional growth in the economy.
5. Rural entrepreneurship facilitates the development of roads, street lighting, drinking water etc. in the rural sector due to their accessibility to the main market.
6. Rural entrepreneurship can reduce poverty, growth of slums, pollution in cities and ignorance of inhabitants.
7. Rural entrepreneurship creates an avenue for rural educated youth to promote it as a career.