India being predominantly a rural country, striving hard to provide quality healthcare services to more than 890 million people who lives there. The importance given to rural health care by Govt. of India is visible through the implementation of dedicated submission under NHM, i.e., NRHM. However, there are still several rural health challenges, i.e., specific needs, belief/ superstition, scarcity of human resources in rural areas, lack of quality research/ coordination and collaboration between various sectors. The possible solutions to these challenges lie in strengthening research in rural health epidemiology, agricultural health, enhancing use of Information Technology & Telemedicine, designing specific clinical services, field practices, applying the biostatistics & mathematical modelling in decision making and mentoring the human resources in specific need of rural health. This article is an attempt to elucidate various rural health challenges and need for development of National Institute of Rural Health in India, to address the challenges of rural health and conduct before mentioned activities as an apex body.