Indian economy has emerged as one of the influential and attractive economies in the world. The liberalization move of the Indian Government in 1990s has given a boost to the economy and put her into a fast route of economic growth. With the beginning of the new millennium, India was being considered to be an evolving super power in the community of nations. In terms of Purchasing Power Parity PPP it now stands as the fourth largest economy in the world. Indian economy has witnessed 8 per cent growth rate in GDP during 10th five year plan and the target for the 11th plan has been set at 10 per cent. In terms of contribution to GDP, the service sector today accounts for 62.5 per cent, while manufacturing sector contributes about 20 per cent of the GDP. The agriculture sector which was considered as the backbone of the economy in post independence era has taken a back seat and contributes about 17.5 per cent of GDP, whereas this sector supports 60 per cent of the population for their livelihood. Here is the mismatch which is causing poverty and unemployment in rural India.