In the modern era of development, tourism plays the most vital role for the exchange of ideas, culture and values throughout the world. It has got greater potential to raise the country’s economic growth in terms of income generation, entrepreneurial skills and its development. The spirit of India resides in her villages and those living in cities and towns have their roots in rural life, which has pastoral beauty and touching simplicity, offer fresh comforting breezes and lavish openness. Tourism growth potential can be bind as a strategy for Rural Development in specific and rural tourism in general which definitely useful for a country like India, where almost 74 per cent of the population resides in rural areas. The tourism sector provides employment to about 50 million people. Even a modest 10 per cent growth in tourism sector would generate 5 million jobs every year and major beneficiary are weaker sections of society women and rural artisans. Rural tourism stands for showcasing the ethnic arts, crafts, culture and lifestyle in its traditional approach. The present study was conducted with an objective to identify the various forms of rural tourism, role of government and private sector in enhancing the efficient tourism prerequisite, to study the problems in rural tourism and to construct the suggestions and recommendations for rural tourism. The present study is based on the secondary data published in various journals, articles, books and others sources of information The study reveals that endorsement of village tourism is a competent device for socio-economic benefits to rural people. It is a multi-sectoral activity and the industry is affected by many other sectors of the nation’s economy. Therefore, government and private sectors should ensure healthier linkages and co-ordination. It also has to play a pivotal role in tourism management and promotion. Further, the study also discloses that rural tourism has the potential to increase public appreciation of the environment and to spread awareness of environmental problems when it brings people into closer contact with nature and the environment. This confrontation may heighten awareness of the value of nature and lead to environmentally conscious behaviour and activities to preserve the environment.