PM Internship Scheme
03.12.2025
PM Internship Scheme
Context
Announced in the Union Budget 2024, the Prime Minister’s Internship Scheme aims to bridge the gap between academic learning and industry requirements. It has recently gained attention due to data regarding offer acceptance rates presented in the Lok Sabha.
About the Scheme
Objective:
- Skill Bridging: To provide professional training and exposure to youth in environments that match current market demands, addressing the "employability gap" faced by industries.
- Target: The scheme aims to skill 1 crore youth over a period of 5 years (with an initial target of 20 lakh trainees annually).
Operational Framework:
- Nodal Ministry: Ministry of Corporate Affairs (MCA).
- Partner Companies: The top 500 companies in India are expected to participate, providing training facilities and mentorship.
- Duration: The internship period is fixed at 12 months (1 year).
Financial Structure
Stipend: Interns receive a total monthly stipend of ₹5,000. The cost-sharing model is as follows:
- Government Share: ₹4,500 via Direct Benefit Transfer (DBT).
- Company Share: ₹500 (paid from the company's CSR funds).
Additional Grants:
- A one-time incidental grant of ₹6,000 is provided to interns upon joining.
Eligibility Criteria
Inclusions:
- Age: Candidates must be between 21 and 24 years old.
- Education: Minimum educational qualification is Class 10 passed.
- Income Cap: Annual family income must not exceed ₹8 lakh.
- Employment: Candidate must not be currently employed full-time.
Exclusions:
- Graduates from premier institutes like IITs, IIMs, and IISERs, as well as professional qualification holders (e.g., CAs, CMAs), are not eligible.
Implementation Challenges
According to recent data presented in the Lok Sabha:
- Low Acceptance: Only 20% of the internship offers extended by companies have been accepted by candidates.
- Key Barriers: Primary reasons for rejection include relocation issues (locations too far), mismatch in job roles, and dissatisfaction with the duration.