Inspite of more than seven decades of planned development efforts, India is still facing the twin formidable problems of unemployment and poverty. Unemployment refers to a situation in which all the workers who are capable of working, and willing to work, do not get employment at a given wage rate. It amounts to a waste of the country‟s labour force. The nature of unemployment in an underdeveloped country like India is quite different from that of advanced countries. The problem of agricultural unemployment in India is particularly crucial due to a variety of factors. It arises primarily due to lack of capital as a complementary factor for labour. It is also due to lack of other complementary factors of production such as fertile land, entrepreneurship, management etc. The objective of this paper is to analyze the causes for unemployment in the agricultural sector in India with a view to offer appropriate policy measures.