New Delhi. The Prime Minister’s Internship Scheme (PMIS), launched with the aim of providing large-scale industry exposure to India’s youth, has had a weak start, falling far short of its ambitious targets. While a few success stories exist, overall participation and retention under the scheme have remained disappointing, raising questions about its design and implementation.
Twenty-one-year-old Nitin Rathore from Kota represents the kind of beneficiary PMIS was designed for. A business administration graduate and the first in his family to seek formal employment, Rathore is currently interning in the human resources department of an Indian multinational. For him, the year-long internship is a pathway to a stable career, and he hopes it will lead to a pre-placement offer. However, Rathore is among a small minority who have actually joined and stayed on under the scheme.
Announced in the Union Budget of February 2024, ahead of the general elections, PMIS promised to offer 10 million internships over five years, targeting youth aged 21–24 from low-income households, particularly those classified as NEET (Not in Education, Employment or Training). The internships were designed to provide practical workplace exposure, a monthly stipend of ₹5,000 and a one-time allowance of ₹6,000, with the government and participating companies sharing the financial burden.
Instead of rolling out the full-scale programme immediately, the Ministry of Corporate Affairs (MCA) opted for a pilot phase. Launched in October 2024, the pilot aimed to train 1.25 lakh interns in its first year. However, participation was far lower than expected. Despite this, the government significantly increased the scheme’s allocation for FY26, budgeting over ₹10,800 crore to scale up internships to 1.5 million, even as utilisation of funds in the pilot phase remained limited.
The lacklustre response prompted a second pilot round in January, but results showed little improvement. As of now, the government has not announced a formal nationwide rollout, stating that further evaluation is needed before deciding the scheme’s future course.
Interestingly, industry participation has not been the main hurdle. Hundreds of companies, including major names such as Tata Steel, Maruti, ONGC, Reliance and Eicher Motors, signed up through industry bodies like FICCI and CII. In the first round, companies offered more internship positions than required, and applications ran into the lakhs. However, this enthusiasm did not translate into actual participation. A majority of offers were declined, and among those who joined, many dropped out midway.
Across the two pilot rounds, only a small fraction of interns completed their tenure, and fewer than 100 candidates have so far secured full-time jobs. High dropout rates and low acceptance of offers have emerged as persistent challenges.
Feedback collected by the MCA and participating companies points to several reasons for the poor uptake. Distance from home, low stipends, long internship duration and roles that did not match expectations were among the most cited issues. Many candidates preferred full-time employment over temporary internships, with a strong inclination towards government or public sector jobs due to perceived job security.
The stipend of ₹5,000 a month was another major deterrent, especially for youth from economically weaker backgrounds who often need immediate income to support their families. Experts note that such candidates may prioritise short-term earnings over long-term career prospects.
Restrictive eligibility criteria have further narrowed the applicant pool. Only unemployed youth within a specific age group, educational background and income threshold are eligible, excluding many potential candidates. Additionally, critics argue that PMIS overlaps with existing apprenticeship and skilling schemes, creating confusion rather than complementarity.
Mismatch between expectations and realities of corporate work has also played a role. Without adequate counselling or handholding, many interns found themselves unprepared for relocation, physical job demands or corporate discipline, leading to early exits.
From the companies’ perspective, administrative and compliance burdens have added to the challenges. Firms have raised concerns about the limited functionality of the PMIS portal, tight timelines for posting opportunities, extensive documentation requirements and the need to assess thousands of applicants individually.
Acknowledging these issues, both industry and the government have suggested course corrections. Proposals include increasing the stipend, introducing clearer pathways to permanent employment, allowing companies to recruit interns directly from campuses, keeping the digital portal open year-round and improving awareness at the grassroots level. The MCA is also considering expanding participation beyond the top 500 companies and upgrading the portal with features like a mobile app and location-based matching.
While the intent behind PMIS remains strong and its potential significant, its early performance has exposed structural gaps. Unless these are addressed, experts warn that the scheme risks becoming another well-funded initiative that struggles to translate vision into tangible outcomes for India’s youth.