BackgroundMinimally invasive approaches for rectal cancer treatment are emerging as the standard of care. Robotic surgery is unfeasible across the country due to constrained resource allocation. This study aimed to assess the oncologic efficacy of laparoscopic resection for rectal cancer in a resource‐limited setting.MethodsA propensity score‐matched analysis was carried out to compare the oncological outcomes of laparoscopic and open rectal cancer resection at a high‐volume tertiary cancer centre in South India.ResultsTwo hundred and twenty patients were included (110 patients in each group). The median follow‐up was 93 months. There was no difference in positive circumferential resection margin between laparoscopic and open group (4.5% vs. 6.4%, p = 0.55), with a significantly better nodal yield in laparoscopic group. There was no significant difference between the laparoscopic and open groups in terms of local recurrence (5.1% vs. 8.3%, p = 0.12), 5‐year disease‐free survival (86% vs. 81%, p = 0.22, HR 0.699, 95% CI 0.353–1.27) or overall survival (85% vs. 76%, p = 0.21, HR 0.658, 95% CI 0.340–1.27). The mean cost between the two groups had no difference.ConclusionIn a resource‐limited setting with good expertise, laparoscopic surgery is an effective minimally invasive option that has good survival outcomes without imposing a financial burden on patients.