Rural tourism is a new trend of tourism industry and growing up to be a potential business in its individual space and it can bring economic and social benefits to the humanity. It is a form of environment based tourism that exposes the rural life, art, culture and heritage at rural locations, thereby favouring the local communities socially and economically. Rural tourism has created incredible impact on the local economy and socio-cultural setup of the concern area. In Asian countries, particularly in India, rural tourism is a latest concept. Rural tourism can help in shaping our society. It can have both positive and negative impacts on rural as well as urban people. There is a scope of rural tourism in India. Rural Tourism also carries a potential scope for the rural populations. This paper aims to exploring rural tourism in India which can help to setup rural tourism policy for the rural people who actually living in and around the tourist location and also finds the possibilities of sustainable development of the rural area. For developing the rural tourism we need to understand the need of rural area with rural environment, demography, and socio-culture, economic and political background of that place. Rural tourism worked as an engine of various kinds of opportunities for the rural development. The Government should encourage private enterprises to promote tourism in rural areas. To develop a strategic marketing plan for rural tourism we have to identify the target customer their needs and wants and how to match it with our rural infrastructure. Rural Tourism can develop a winwin situation for both the rural and urban populations.