This paper aims to analyse the problem of unemployment and socio-economic impoverishment in India. Poverty in India is a remarkable problem that hindrance the growth of our nation. It leads to other issues like unemployment, low education, malnutrition etc. Indian society is confronting with the problem of unemployment.The unemployment problem is a global phenomena and ILO predicts that in India the rise in unemployment in coming years. Due to demographic dividend, the increase in the share of youth people is considered as a indicator of future economic growth. But in India, harnessing these resources is a big issue. The youth challenge is regarded as the most censorious in the 21st centry’s economic growth. Although Government is concerned about creating job opportunities for youth but these initiatives are not sufficient for India. This paper also recommends some measures to overcome the current situation of poverty and unemployment in India.