With regard to forest management, rural livelihood, and poverty inIndia, it is often debated that JFM regime is not delivering livelihood functions of the forests to their dependents. This paper examines the state and scale of two decades old people-centric JFM system of India, and analyses the reasons with their indicators to shade off its shine in reducing poverty among forest dependent people in several parts of the country. Paper also discuss, how and to what extent, adoption of a multi-agency linked Collaborative Forest Management (CFM) system could be a better strategy over JFM regime to reassure delivery of livelihood functions of the forests totheir dependents in rural India. Arguments in this communication are intended to provide forest managers and policy-makers with necessary input to consider some location specific forest based entrepreneurial activities in CFM mode to provide a continuous source of small income to forest dependent people to ensure long lasting success of their forest management endeavours. Paper concludes with a recommendation to convert unviable JFM areas of India into a multiagency linked CFM system in a phased manner.