Sustainable livelihood involves addressing issues of vulnerability, enhancing capabilities and assets in addition to providing basic means of sustenance over generations and in even periods of strife. In India, a majority of people still reside in villages; and rely on agriculture with limited rural diversification. They have a predominance of marginal farmers with poor earnings or wages and limited access to basic amenities mainly water, sanitation and health. For example, 70–75% of water does not meet the standard quality prescribed by the World Health Organization. Rural India is at a crossroads as environmental andPollution pollution concerns are engulfing agricultureAgriculture. Climate changeClimate change can lower farmer income by 25%. All these have a more adverse impact on vulnerable groups and rural areas. Against this backdrop, the paper examines the nature of rural livelihoodRural livelihood and the multi-faceted aspects ofSustainability sustainability in general and especially in the BankuraBankura district of West Bengal. The paper argues that sustainable livelihood entails providing rural areas with physical, economic, knowledge, societal, and electronic connectivityConnectivity in the contemporary era. It uses indicators for the above parameters of connectivity and runs a Principal Component AnalysisPrincipal component analysis to examine the above hypothesis and identify the relative importance of different dimensions or factors. The paper also focuses on one arena of livelihood management to promote sustainable rural development, i.e., the Panchmura, BankuraBankura district terracottaTerracotta industry, which is part of folk culture and heritage. It has attained global recognition by registration under the ‘Geographical Indications of West Bengal.’ This along withLocal local communityCommunity participationParticipation has enhanced work security as well as a communityCommunity more synchronized with the environment, making the village an example of how to strive towards sustainable rural livelihoodRural livelihood.