Forest Rights Act (FRA), has not been properly implemented, otherwise it is a remarkable devolution process and could have been an example for implementation of other poverty reduction policies. Particular Vulnerable Tribal groups (PVTGs), whose major income is through forest and their poverty alleviation is possible only by up-scaling the forest income, which is envisaged in FRA. The land entitlement provided in the devolution process and agriculture income can also be a major contribution. Using data by survey from Core and Buffer area of Achanakmar Tiger reserve in Chhattisgarh, we derive the counterfactual of what Baiga household’s income, poverty and inequality would be without forest and forest income. The results disparagingly show that, in the absence of forest income; poverty would have been deeper and income inequality would be more. The study indicates that land ownership, awareness, education and way of life are very pivotal in helping household gain access to their devolution gains. We also find that those who are entirely dependent on forests, have unique non-observable attributes that make them more innovative and productive NTFP collectors, implying positive selection on their attributes. Moreover, engagements in village activities have a positive spill over effect on household income.