The most striking feature of the livelihoods assessment study is that only 15 per cent of the sampled households are primarily dependent on land, i.e., agriculture and livestock rearing, for their livelihoods and the rest depend on non-farm income sources. Service or pension is the primary income source for nearly half the households (45%). The second largest occupational group is of daily labourers (26%). Business and trade is the major income source for rest 14 per cent of the households. About 44 per cent of the sampled households live below the locally perceived poverty line of Rs. 634.25/p/m. The poor are mainly daily labourers or agriculturists by occupation and Scheduled Caste or Rajputs by caste. The poor, SCs and female-headed households are marginalized in terms of their incomes, assets and resources consumed. The difference in incomes between the agricultural households and those in services or business helps explain the massive shift from farm to non-farm occupations. This has serious negative implications for integrated resource management. The key to a positive turnaround lies in enhancing the local livelihoods potential through improved productivities of agricultural, forest and common lands. Other livelihood opportunities based on niche products and services, e.g., village tourism also need to be promoted. A critical constraint is the flagging community spirit, dysfunctional village level institutions and inadequate knowledge and management capabilities. The involvement of dedicated, competent and honest voluntary organizations can help overcome these handicaps and strengthen local institutions.

The study provides insights into the constraining factors in the operation of the institutions and makes recommendations for changes in the institutional framework and policies for integrated community management of natural resources. Most of the institutions are dysfunctional since many of these have been formed as a result of government orders. Due to lack of direction and cooperation from the government machinery, the Mahila Mangal Dals as well as Yuvak Magal Dals are also in a defunct state. Keeping in the spirit of the Panchayat Raj Act of 1992 fund, function, functionaries need to be devolved on PRIs. So far the transfer of funds and functionaries to the PRI has been resisted by the state administrators, elected MLAs and functionaries who see diminishing of their power as a consequence. Without the transfer of funds and functionaries, the transfer of functions is a mockery. Such transfer along with activation of the sectoral Gram Panchayat sub-committees can lead to an improvement of the services provided to the local communities. 

Significant resource gaps exist in the mountain villages, in terms of water, fuelwood, fodder, foodgrain and livelihoods. Farm production provides well below 50 per cent of the annual requirement of the cereals, vegetables and oil. About 45 per cent of the households are unable to meet the basic living expenses identified by the local communities. Large potential exists for increasing water, land and forests productivity in the mountain areas. Given the good human assets, adequate precipitation, streams and springs and good infrastructural resources, there is favourable scope for creating desirable local livelihood opportunities. Alienation of the local communities is a major constraint and there is an urgent need to create a sense of ownership or community control over critical natural resources like forests and water. Engagement of community in planning and implementing its own development is necessary. Mobilization of the communities and changes in the policy, legal and institutional frameworks is critically essential.