2 Years of PM Internship Scheme

Syllabus: GS2/Governance

Context

• The PM Internship Scheme has completed 2 years of its implementation.

PM Internship Scheme 

• Announced in: Union Budget 2024-25.
• Aim: To provide real-life work experience to job seekers in top companies.
• Implementing Agency: Ministry of Corporate Affairs.
• Eligible candidates aged 18–25 (not in full-time employment) upon selection receive ₹9000/month, a ₹6000 joining grant, and hands-on exposure.
• Internships can be 6 or 9 months in duration and are available for different qualifications including Class 10, Class 12, ITI, Diploma, Graduation and PG.
• The top companies have been identified based on the average Corporate Social Responsibility expenditure of the last three years.
  • Participation of the companies in the scheme is voluntary.
• Eligibility: 
  • Do not have a family member earning over ₹8 lakh per annum.
  • 18 to 25 years (relaxation for OBC/SC/ST).
  • ITI: Matriculation + ITI in relevant trade.
  • Diploma: Intermediate + AICTE-recognized diploma.
  • Degree: Bachelor’s degree from UGC/AICTE-recognized university.

Key Changes in the Scheme

• Expanded coverage: The scheme has been expanded beyond the top 500 companies to include MSMEs and sunrise sectors.
• Higher stipend: The monthly stipend has been increased to ₹9,000.
• Flexible duration: The internship period has been reduced from 12 months to 6–9 months.
• Relaxed eligibility: The eligible age group has been expanded from 21–24 years to 18–25 years, and master’s degree holders and final-year undergraduate and postgraduate students have been included.

Performance

• The changes in the scheme has resulted in a sharp 67% to 100% increase in youth joining the scheme in the third round. 
  • The Round III, which was launched in April this year, will end in December.

Significance of PMIS

• Improve Job Readiness: Practical industry exposure can help bridge the gap between academic qualifications and workplace requirements.
• Supports demographic dividend: It can help convert India’s large youth population into a productive workforce.
• Promotes industry participation: Involving MSMEs and sunrise sectors can widen internship opportunities beyond large corporations.

Way Ahead

• Improve internship quality: Internship roles should involve meaningful work, specialised skill development and mentorship rather than routine assignments.
• Monitor completion and outcomes: The government should track completion rates, skill acquisition and subsequent employment, rather than relying only on enrolment figures.
• Improve industry–education linkages: Companies and educational institutions should coordinate to align internship opportunities with emerging labour-market needs.

Source: IE