The Adivasi question in south India has become one of the predominant sociological engagements, especially after the onslaught of liberalisation, privatisation and globalisation (LPG) in India and its effects are even more in the areas predominantly inhabited by the of Adivasis. It is because of natural wealth located in these Adivasi areas. To plunder this wealth, the State has been clandestinely allowing MNCs to establish their companies in the name of development of these regions. This has paved the way for large scale exploitation of natural resources in Adivasi-inhabited areas across India. Are these attempts of the state and MNCs sustainable and what should be the role of social scientists to address these questions in the larger realms of developmental discourse? Taking a lead from the above scenario the present paper will look at the Adivasis questions in relation to the development interventions, livelihoods and sustainability of resources in a drought prone region of south India. Some scholars view that there is a direct link between livelihoods and development interventions and sustainability of the resources. The link between them is crucial to raise and address the questions pertaining to sustainability of resources and livelihoods. These questions, further, lead one to ponder over the conditions of Adivasis and their depleting natural resources and sustainability of the existing resources. To enhance the livelihoods base, both, the donor agencies and the State, must take cognisance of and balance the existing local resources. This paper will seek to address the interface between the livelihoods and sustainable development of natural resource base among the Adivasis of south India. Further, it will also try to address the role of donor agencies in bridging the gap between the haves and have nots, which is drastically increasing year by year without any change.