Tribal communities constitute a significant segment of India’s population and are endowed with rich natural resources, traditional knowledge systems, and indigenous skills that have been preserved over generations. These communities possess immense potential for contributing to the nation’s economic growth and sustainable development. However, despite this inherent strength, many tribal regions continue to face persistent socio-economic challenges such as poverty, unemployment, low levels of educational attainment, inadequate infrastructure, and limited access to formal markets and financial institutions. These constraints have restricted opportunities for tribal youth, often leading to underemployment and migration. In recent years, skill development and entrepreneurial training have emerged as effective strategies for addressing these challenges and promoting self-reliance among tribal youth. This seminar paper examines the role of skill development initiatives and entrepreneurship in enhancing sustainable livelihoods within tribal communities, with a particular focus on small-scale enterprises and community-based economic activities. Special reference is given to the Van Dhan Vikas Kendra (VDVK) scheme, which aims to strengthen tribal livelihoods by adding value to minor forest produce through training, capacity building, and market linkage support. The paper analyses various government initiatives and training mechanisms designed to foster entrepreneurship among tribal youth, highlighting their impact at the grassroots level. It also discusses key challenges such as lack of awareness, limited access to credit, inadequate marketing support, and infrastructural barriers that hinder the growth of tribal enterprises. State-level case studies are examined to illustrate successful models of tribal entrepreneurship and skill development. The study concludes that skill development and entrepreneurship can play a transformative role in tribal economies by generating employment, enhancing income levels, and promoting inclusive and sustainable development. Strengthening policy support, institutional frameworks, and market access is essential to unlock the full potential of tribal youth and ensure long-term socio-economic empowerment.