The Prime Minister’s Internship Scheme (PMIS), one of the flagship employment-oriented announcements of Budget 2024–25, appears to be facing major implementation challenges. Only 6 percent of candidates who received internship offers under the scheme have actually joined work, according to official data reviewed this month.

The scheme aims to provide internships to one crore youth in five years, giving them practical work experience in India’s top 500 private and public sector companies. However, just months into its rollout, the participation and conversion rates remain dismally low.

What is the PM Internship Scheme?

Announced by Finance Minister Nirmala Sitharaman during the Union Budget 2024–25, the PM Internship Scheme was positioned as a transformational step to bridge the gap between academic learning and professional skills. The idea was to link colleges, universities, and skilling institutions with top corporates and public sector firms, enabling young Indians to gain hands-on experience.

The internships, envisioned as short-term, paid engagements, were meant to be available in diverse sectors such as:

• Manufacturing

• Logistics and supply chain

• Information technology

• Banking and finance

• Retail and consumer services

To ensure smooth execution, the scheme was designed to be coordinated via a dedicated digital platform, enabling application, matching, offer letters, onboarding, and certification — all through a single window.

Reality: Low joining rate despite lakhs of offers

While the initial traction was high and the government reportedly issued lakhs of internship offers, the actual joining rate has turned out to be barely 6 percent.

Officials admit that this disconnect between offer and joining is worrying and could undermine the credibility and objectives of the scheme. Some of the key challenges cited by both officials and industry insiders include:

• Mismatch between location preferences and job sites

• Internship stipends not being attractive enough

• Communication gaps between students, institutions, and companies

• Lack of clarity about roles and work expectations

• Delays in onboarding and administrative procedures

A senior government official acknowledged that “many students applied in enthusiasm but later declined or dropped out due to personal reasons, stipend concerns, or travel constraints.”

Lack of awareness, inadequate college-level coordination

Several students from Tier 2 and Tier 3 cities said they were either unaware of the scheme’s procedures or did not get enough support from their colleges or placement cells.

Ritika Sharma, a B.Com graduate from Rajasthan, said, “I got an email about an internship offer in Mumbai, but there was no clarity on accommodation, and the stipend wouldn’t cover travel and rent. I had to decline.”

Another reason for the poor joining figures could be the timing of the internship windows, which sometimes clash with exam schedules or college final semesters, making it difficult for students to commit.

Some industry participants too pointed to gaps in coordination. A company executive involved in hiring under the PMIS said, “We were ready to onboard 300 interns, but only 30 actually turned up despite confirmations. Many just didn’t respond after accepting offers.”

Government response: Scheme is in early stages

The government has maintained that the PM Internship Scheme is still in its initial phase, and that adjustments will be made based on feedback from students, institutions, and industry.

The Ministry of Skill Development and Entrepreneurship (MSDE) is reportedly in discussions with stakeholders to:

• Improve onboarding mechanisms

• Offer higher flexibility in internship duration and location

• Partner with more colleges for awareness campaigns

• Launch mobile-based updates and helplines for queries

A senior MSDE official stated, “We are not disheartened by early challenges. Large-scale schemes need fine-tuning. We will ramp up awareness, ensure better matching, and resolve logistical hurdles.”

Targets and timelines

The PM Internship Scheme has set the ambitious target of providing internships to one crore youth in five years, which translates to roughly 20 lakh internships per year.

So far, the first phase aimed to roll out 5 lakh internship offers, with an eye on sectors like IT services, logistics, retail, and BFSI (banking, financial services and insurance). However, only about 30,000–35,000 students have joined or started internships, highlighting a huge gap between intent and execution.

Experts suggest that without course corrections, the scheme may fall short of its targets and lose traction among the very youth it aims to empower.

Experts call for targeted interventions

Skill development experts and education reformers have advised the government to:

• Tailor internship offers based on regional preference and student background

• Offer travel and accommodation support for outstation internships

• Introduce flexible work-from-home internships where feasible

• Integrate PMIS internships with academic credits and recognition

Dr. Rajan Choudhary, an education policy expert, said, “For PMIS to succeed, it must be rooted in ground realities — location matters, stipend matters, and institutional support matters. It cannot work like a one-size-fits-all model.”

Conclusion

The PM Internship Scheme is a powerful idea with transformative potential, but its on-ground execution currently faces serious bottlenecks. The low participation rate — just 6 percent of offered candidates joining — is a wake-up call for policymakers.

To achieve its goal of empowering one crore youth, the scheme will require urgent policy tweaks, stronger campus partnerships, industry commitment, and above all, a youth-centric approach that accounts for economic and logistical challenges faced by aspiring interns.

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