- Labor intensive: Rural Industries have high potential Employment generation. Thus they serve as an antidote to the widespread problems of unemployment.
2. Income generation rural Industries have high potential of income generation in rural areas. Thus it helps in reducing disparities and income between rural and urban areas.
3. Balanced regional development these industries encourage dispersal of economic activities in rural areas which helps in promoting balanced regional development.
4. Village republics Development of industries in the rural areas also helps in building up village Republic.
5. Art and creativity rural industries also helps in protecting and promoting the art and creativity i.e. the age old rich heritage of the country.
6. Environment friendly rural Industries being ecofriendly lead to development without destruction.