India has vast alluvial plains, lofty mountains, plateaus and coastal areas. After independence, first three five years plans focused on agriculture as agriculture is the main source of livelihood, raw material for industries, and food grains supply for billions, and backbone of the Indian economy. As a result India became independent in food grains. But the impact was limited to agriculture belt of the country. Later on focus was shifted to industrial development and many regions experienced the fruits of industrial development. Agriculture and industrial development led to islands of prosperity. Vast tracts where agricultural land was not available and industries could not be developed remained undeveloped. Inter-regional, inter-personal and inter-gender inequalities increased. Though India is able to reduce the number of persons below poverty line, but not able to eradicate it. The vulnerable groups of the society were not able to benefit as these groups neither possess agricultural land nor have any capital required to be invested in industries. Agriculture and industrial development led to negative impacts on environment in terms of loss of fertility, salinity of soil, air pollution etc. Introduction of machines in agriculture and industries increased the production, but displaced a large number of workers. In these conditions intervention is required to develop sustainable livelihood sources for the vulnerable groups of the society and in the regions not able to develop till date. It has been experienced in different parts of the world that tourism has the capability to provide sustainable livelihood for the people of such regions and vulnerable groups of the society and helps in reduction of poverty. Tourism generates jobs, income, develops infrastructure and other basic amenities and services in such regions. Tourism not only enables the residents to maintain the environment but also helps in the improvement of the fragile environment. The present paper attempts to assess the role of tourism in sustainable development of vulnerable groups and resource scarce regions in India.