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This article examines the varied impacts of the National Rural Employment Guarantee Scheme (NREGS) as a development delivery institution for the tribal communities vis-a-vis other social groups across the Indian States, using the framework of new institutional economics. A number of State-specific, socio-economic institutional factors seem to be responsible for these variations. The article therefore suggests institutional reforms and convergence of the development initiatives of the Ministry of Tribal Affairs with the NREGS in order to realise the optimal potential of the scheme, and, in particular, to ensure greater livelihood opportunities for these marginalised groups and their entitlement to productive resources with greater socio-economic and political empowerment.