In India 700 million rural people directly depend on climate-sensitive sectors like agriculture, forest and other natural resources for their subsistence and livelihood. Of these about 300 million rural poor are dependent on forest for their livelihood and more than half of them are tribal who depend on non-timber forest products (NTFPs). It also tries to estimate the factors responsible for the decisions of adaptation to climate change using the probabilistic model of Heckman s two-step process. Both socio-economic and climatic factors play a role in this decision-making process. This paper has important policy implications for poverty, livelihood vulnerability and migration. Acknowledgement : In India 700 million rural people directly depend on climate-sensitive sectors like agriculture, forest and other natural resources for their subsistence and livelihood. Of these about 300 million rural poor are dependent on forest for their livelihood and more than half of them are tribal who depend on non-timber forest products (NTFPs). It also tries to estimate the factors responsible for the decisions of adaptation to climate change using the probabilistic model of Heckman s two-step process. Both socio-economic and climatic factors play a role in this decision-making process. This paper has important policy implications for poverty, livelihood vulnerability and migration.