India is a vast, ecologically and culturally diverse, and densely populated country. While the percentage of forest cover is not very high (16–19 per cent) and many parts of these forests are in various stages of degradation, forests are a vital resource for many communities. State policies on forests, other common land and NTFPs, and the implementation of these policies, therefore have a significant impact on rural livelihoods as well as forest condition. A changing agrarian and industrial context further influences the role that NTFP collection can play in rural livelihoods. Analysing current policies and practices provides important insights about the possible role for NTFPs in rural development. This chapter seeks to do so by using macro-level analyses across several states and detailed case studies.