Indian economy has been facing challenges with regard to unemployment and economic growth. The problem of unemployment is perceived to be conflicting with economic growth. The anti unemployment measures initiated varies from developed nations to developing nations. The developed countries provide unemployment compensation and social insurance. The most alarming form of unemployment today is educated unemployment. The scheme continued till the end of March 1993 and in the year 1993-94, the scheme was rechristened as Prime Minister?s Rozgar Yojana (PMRY). Under the scheme, the District Industries Centre (DIC) and commercial banks play the pivotal role. The scheme was specifically designed for the educated unemployed youths living in both rural and urban areas. The idea behind framing the PMRY scheme was to reduce the unemployment rate among the educated youth by creating self employment opportunities in industry, service, and business sectors.