A countries economic condition has strong relationship with its unemployment. Though India is one of the developing country in Asia and productivity has increased much comparing to the previous years records; still overall India’s economic system has got some limitation. However, strong economic sysestem alone cannot solve the problems of a country. In order to have a well developed and effective economic system it is vital to keep pace with the other system of a state, such as- political system and others. Unemployment now became a BUZZ word in India, which doesn’t have only one root problem but researcher have found multiple root cause of unemployment in India. Some of these are – population, less industrial development in rural areas, less demand of products which is a result of less production followed by lack of jobs. The number of unemployed people in india has crossed the number of jobs that the country can support; Where most of the jobs are not suitable for the skilled or semi skilled people. A lot of unemployed and under employed people including educated , skilled or semi skilled people are taking place in the list of unemployment who have opportunity but very limited. Sometime educated people also left with non- suitable jobs or no jobs. As population is increasing constantly its becoming harder for the state to ensure about every peoples right. Safety and health dept can no longer provide their service to every citizen of country. And so is unemployment. Industrial developments, garments, mills and factories these are some source of India’s production and income sectors. But less industrial development has occurred in rural areas where half of the people are unemployed. The unemployment rate for 2009-2010, according to the state Labour Bureau, was 9.4 percent nationwide, rising to 10.1 percent in rural areas, where two-thirds of the 1.2 billion population live.