Despite a sharp increase in budget allocation—from ₹2,000 crore in FY24-25 to ₹10,831 crore in FY25-26—the Prime Minister’s Internship Scheme (PMIS) is struggling with slow fund utilisation and low participation, according to a report by the Parliamentary Standing Committee on Finance.
As of mid-February 2025, only ₹48.41 crore has been utilised out of the ₹2,000 crore set aside for the pilot phase.
Announced in Budget 2024-25, PMIS aims to provide one crore internships over five years, starting with a pilot project targeting 1.25 lakh internships in FY 2024-25.
However, the report highlights that despite companies offering over 1.27 lakh internships in the first phase, only 28,000 candidates have accepted offers, and just 8,700 interns have joined.
The second phase, launched in January 2025, has added 1.15 lakh new and revised internship listings, but data on participation remains unclear.
The report points to significant implementation challenges hindering uptake.
Feedback from evaluation agencies—including IIM-Bangalore, Delhi School of Economics, and Symbiosis Institute of Business Management—suggests that many candidates are discouraged by internship locations being too far from their homes, mismatches between available roles and candidate expectations, and the program’s extended 12-month duration.
Additionally, concerns have been raised about a lack of transparency in internship details, which led to changes in the second round, such as displaying company names, geotagging locations, and improving the user interface of the PM Internship portal.
The eligibility criteria have also drawn scrutiny.
While the scheme targets youth aged 21-24 who are not in full-time education or employment, graduates from IITs, IIMs, National Law Universities, and other premier institutions are excluded, along with those holding postgraduate or professional degrees such as CA, CS, CMA, MBA, MBBS, and BDS. Some experts argue that these restrictions could limit the talent pool and affect the scheme’s overall impact.
Industry participation has also fallen short of expectations.
While the government aimed to involve the top 500 companies based on their Corporate Social Responsibility (CSR) spending, only 318 companies had joined the scheme’s second phase. Leading recruiters include Jubilant Foodworks, Maruti Suzuki, ONGC, Reliance Industries, and Eicher Motors, but overall corporate engagement remains below target.
The financial structure of the scheme includes a ₹5,000 monthly stipend per intern, with ₹4,500 paid by the government and ₹500 contributed by companies from their CSR funds. Additionally, a one-time grant of ₹6,000 is provided to cover incidental expenses, and interns are insured under the Pradhan Mantri Jeevan Jyoti Bima Yojana and Pradhan Mantri Suraksha Bima Yojana. However, companies have raised concerns over the financial burden of training costs, which must be covered entirely by CSR budgets.
The report notes that despite a ₹2,000 crore allocation in FY24-25, only ₹48.41 crore had been disbursed by mid-February 2025, with ₹21.10 crore already paid and the remainder in the process of distribution. This raises questions about whether the programme can effectively scale up as planned, given that the budget for FY25-26 has been increased more than fivefold to ₹10,831 crore, with a target of 15 lakh internships for the year.
In response to implementation hurdles, the Ministry of Corporate Affairs has introduced several changes, including enhanced monitoring dashboards for state governments, voice notes for better accessibility, and awareness campaigns through state-level information and education initiatives. However, with many candidates still hesitant to join, the scheme faces pressure to improve its execution before expanding further.
The Parliamentary Standing Committee on Finance has urged the government to address these gaps, ensure better industry participation, and streamline fund disbursement to maximise the impact of the initiative. With significant financial commitments already made, the success of PMIS will depend on how effectively these challenges are resolved in the coming months.
