On the ouskirts of the Andhra Pradesh capital, Bush, wearing a blue shirt and a pair of black trousers, walked around the compound of the Acharya N G Ranga Agricultural University, trying his hand at threaded weaving looms put on display.
Accompanied by Chief Minister Y S Rajasekhara Reddy, the US President spoke to women of self-help groups, posing for pictures, signing autographs and taking straw hats as mementos.
Folk dancers tapped their feet to drumbeats as Bush walked past at a leisurely pace, waving to the artistes and planting kisses on the faces of children around.
Bush, a Texan, also saw a 7-year-old buffalo, Murra, which was brought in from Haryana.
His arrival to Hyderabad was a low-key but a tightly guarded affair.
Sharpshooters were on guard all around the Andhra capital as US secret service agents fanned across the city for the his safe tour.
Two aircraft resembling his Air Force One flew into Hyderabad one after the other as part of US presidential security.
Bush and his wife Laura stepped down from their Boeing 747-200B that landed at the Hyderabad airport shortly before 1000 hrs.
Andhra Pradesh Governor Rameshwar Thakur and Chief Minister Y S Rajasekhara Reddy received the US President and his wife at the airport in what was a low-key reception.
Bush signed autographs for a couple of kids who greeted him as he stepped down from Air Force One.
With a ring of US security agents around, Bush and his wife walked up to a helicopter that carried them to the agricultural university.
During his stay in the Andhra Pradesh capital for some hours, Bush is also scheduled to meet students of the Indian School of Business for an interaction.
Before the US President's arrival at the university, Secretary of State Condoleezza Rice and US Ambassador to India David C Mulford mingled with women volunteers and artisans.
Rice was presented with a handloom sari and straw hats while they strolled around the university compound before the President arrived.