I don’t know why you think it’s rude. Being touchy feely isn’t rude. Some people are huggers. They don’t mean to be rude. Recoiling and making faces at people is actually rude

Politely state that you are sorry but you are having hard time with touch or prefer not to be touched. Specify that it’s your issue, not theirs, so they don’t feel embarrassed.

Offer fist bump, shaking hands or high five instead. Or if you prefer zero touch as not even shake hands offer kind of encouragement like great job or something