India possesses several advantages due to its varied ecological range and agro-climates to cultivate several important and diverse commercial food commodities ranging from cereals, fruits and spices to medicinal plants. The country has abundance of human resource comprising skilled, educated, technical and scientific manpower on one hand and unskilled manpower on the other. Forests- and agriculture-based industries are a major source of employment in the primary, secondary and tertiary sectors all over the country. This article has presented a brief overview of the potential of forest and agriculture in generating employment, providing livelihood and environmental services, sequestration of green house gases, carbon trading, rehabilitation of degraded lands, production of fuel wood, etc. There are clear linkages and synergies between agricultural production and sustainable forest management. If the sustainability of the agriculture and forests can be assured, food security and employment generation would go in long-term perpetuity.