The rural people of India also constitute tribal people, who are the children of nature and who mainly depend on agriculture & allied activities for their livelihood. There are approximately 200 million tribal people in the entire globe. India has the largest concentration of tribal people than anywhere in the world except in Africa. There are 0.256 million tribe resides in the Uttarakhand. Agriculture is the only source of food security therefore to have sustainable livelihood security & improve the standard of living, the farm families need to generate additional income in a sustainable manner from the available farm resources .The traditional economy of tribes is for subsistence only not for profit. Tribal farms are characterized by small & fragmented land holdings, low productivity of crop and livestock, disguised unemployment, poor income and low risk bearing ability. Thus it is important to improve the farm income and the standard of living of tribes through the practice of better farming system. The major policy implication is there exist sufficient scope to increase the farm income through reallocation of existing farm resources optimally under all farming systems.