Jammu Kashmir has the dubious distinction of having the maximum number of unemployed youth in India. According to data furnished by official sources, there has been an increase of 400% increase in the number of unemployed youth during the past five years. Curiously 6.11 lac registered unemployed youths in the state constitute 5.30 % of total population of Jammu Kashmir, a ratio which is highest in any state of India. The national average percentage of unemployed youth in India is 2.60%. In 2007 Jammu and Kashmir had 1.10 lac unemployed youth and in the year 2011 and 2012, the total strength of unemployed youth touched 6.11 lac mark which is over 400% increase in last 5 years. With no jobs available in the private sector, the majority of the unemployed youth mostly depend on government jobs. The government has failed to lure the private sector. Last year top Indian industrialist Mr Ambani had to cut short his Valley visit as he got stuck in a traffic jam near Pantha Chowk when he was on his way to the Valley of Shepherds. He was in the Valley to explore the possibility of investing in various fields. The state also failed to persuade the TATA Telecom to continue its services in the state. The company withdrew from Jammu Kashmir last year leaving thousands of youth jobless. This also reflects short comings in the MoU signed with the TATA Telecom. Had it been signed properly, the situation today would have been different. The gravity of the problem can be gauged from the fact that thousands of persons applied for fifty-five posts of forest guards last year. Similarly interviews for some posts in the Fishries Department in Doda district last year evoked overwhelming response. Agreed that the government cannot give a government job to everyone but this argument cannot exonerate the state government especially when it has not come up with a comprehensive job policy. If government jobs cannot be given, there has to be some alternative. The government has been providing soft loans to the unemployed youth. The canvas of this scheme must be widened and all the facilities needed for setting up of income generating units need to be provided to the candidates to make this scheme a success. The government has to be serious in this otherwise the scheme shall die down. Meanwhile, the state government must try to get private investors in the state.