Prime Minister’s Internship Scheme

• 16 Jan 2026

For Prelims: Prime Minister’s Internship Scheme, National Apprenticeship Promotion Scheme, Skill India Mission, Pradhan Mantri Kaushal Vikas Yojana 4.0 

For Mains: Government Schemes for Youth Employment and Skill Development, Design and Implementation Challenges of Flagship Welfare Schemes, Education–Industry Skill Gap in India

Source:BL 

Why in News?  

Data from the Controller General of Accounts show severe underutilisation of funds under the Prime Minister’s Internship Scheme (PMIS), pointing to weaknesses in the scheme’s design, demand, and implementation barely a year after its launch. 

What  is the Prime Minister’s Internship Scheme (PMIS)? 

• About: The PMIS, under the Ministry of Corporate Affairs, announced in the Union Budget 2024–25, aims to provide one crore internship opportunities over five years in top 500 companies to enhance the employability of youth aged 21–24 years. 
• Benefits: The scheme offers a Minimum Stipend of Rs 5,000 per month, a One-Time Grant of Rs 6,000, and Insurance Coverage under PM Jeevan Jyoti Bima Yojana and PM Suraksha Bima Yojana, along with exposure to diverse sectors and leading companies. 
• Internship Duration: The internship lasts 12 months, with at least half of the period spent in real workplace or job-based experience, not classroom training. 
• Eligibility: Candidates must be 21–24 years old, possess Minimum Class 10 Qualification or above (ITI, Polytechnic, Graduation etc.), and should not be engaged in Full-Time Employment or Regular Education (distance or online education allowed). 
• Ineligible Candidates: Graduates from IITs, IIMs, NLUs, IISERs, holders of professional or postgraduate degrees (CA, CMA, CS, MBA, MBBS, etc.), candidates trained under National Apprenticeship Promotion Scheme (NAPS)/ National Apprenticeship Training Scheme (NATS). 
  • Income of any family member exceeds Rs 8 lakh for FY 2023-24 , families with regular government employees, and applicants already in any government skill, apprenticeship, or internship programme are ineligible. 
• Significance: PMIS aims to enhance employability by providing structured, real-world industry exposure to youth. 
  • Bridge the education–industry gap through hands-on training in top companies. 
  • Expand access to internships beyond elite institutions and urban centres. 
  • Support youth from low-income households with financial assistance during internships. 
  • Build a skilled workforce aligned with industry needs and national economic growth.

What are the Key Concerns Regarding the Prime Minister’s Internship Scheme (PMIS)? 

• Severe Underutilisation of Funds: As of November 2025, the Ministry of Corporate Affairs has spent only about 4% of its FY26 budget, despite an allocation of over Rs 11,500 crore, of which around 94% was earmarked for PMIS. 
  • This sharp underspending reflects weak uptake of the scheme and a clear gap between budgetary intent and execution capacity. 
• Low Acceptance Rates: Despite high application numbers, less than one-third of internship offers are accepted, suggesting the scheme does not adequately meet candidate expectations. 
  • The mismatch between applicant preferences and internship locations or roles points to flaws in design and coordination. 
• Poor Completion Numbers: Very few interns have completed the programme, raising concerns about retention, quality of engagement, and institutional support. 
• Inadequate Financial Incentive: The Rs 5,000 monthly stipend is insufficient to cover basic living costs, reducing the scheme’s attractiveness, especially in urban centres. 
• Credibility Gap: The sharp contrast between the ambitious target of one crore internships and weak pilot outcomes risks undermining policy credibility.

What are India's Major Skill Development Initiatives? 

• Skill India Mission: A flagship initiative to skill, reskill, and upskill youth through industry-relevant training. It focuses on employability, entrepreneurship, and future-ready skills, with over 6 crore individuals trained, including in AI, robotics, green energy, and Industry 4.0. 
  • Restructured Skill India Mission (2022–26), merges Pradhan Mantri Kaushal Vikas Yojana 4.0 (PMKVY 4.0), the Pradhan Mantri National Apprenticeship Promotion Scheme (PM-NAPS), and the Jan Shikshan Sansthan (JSS) Scheme into a single Central Sector Scheme.  
  • All courses under the Skill India Program are aligned with the National Skills Qualifications Framework (NSQF) and integrated with DigiLocker and the National Credit Framework. 
• Pradhan Mantri Kaushal Vikas Yojana (PMKVY): Launched in 2015, PMKVY provides free, short-term skill training to enhance employability.  
  • Across four phases, it has trained over 1.63 crore candidates (as of July 2025), with a focus on reskilling, upskilling, and recognition of prior learning. 
• Jan Shikshan Sansthan (JSS): A community-based vocational programme for non-literates, neo-literates, and school dropouts, offering flexible and low-cost training.  
  • Over 26 lakh beneficiaries were trained between FY 2018–19 and 2023–24. 
• Pradhan Mantri National Apprenticeship Promotion Scheme (PM-NAPS): Aims to expand apprenticeships by providing 25% stipend support through DBT to youth aged 14–35.  
  • As of May 2025, 43.47 lakh apprentices have been engaged across States and UTs. 
• Rural Self Employment and Training Institutes (RSETIs): Bank-led residential training centres focused on entrepreneurship and self-employment for rural youth. 
  • RSETIs trained over 5.67 million candidates as of June 2025. 
• Deen Dayal Upadhyaya Grameen Kaushalya Yojana (DDU-GKY): A demand-driven, placement-linked skilling scheme under NRLM targeting rural youth unemployment.  
  • It promotes wage employment and inclusive rural development. 
• PM Vishwakarma Yojana: Launched in 2023 to support traditional artisans and craftspeople in 18 trades.  
  • PM Vishwakarma Yojana provides skill training, toolkits, collateral-free credit, digital incentives, and market linkages. 
• Skill India Digital Hub (SIDH): A technology-enabled platform using Aadhaar-based verification for skilling delivery.  
  • SIDH supports real-time monitoring and integrates skilling with education and entrepreneurship systems. 
• Centres of Excellence at NSTIs: Established in 2025 at Hyderabad and Chennai to strengthen advanced skilling. They focus on instructor training and emerging areas such as AI, robotics, and green technologies. 

What Measures can Strengthen the Prime Minister’s Internship Scheme (PMIS)? 

• Recalibrate Stipend Using Living-Cost Benchmarks: Drawing from Germany’s dual vocational training system and India’s NAPS, stipends should be region-linked to minimum living costs to improve offer acceptance and completion rates. 
• Mandate Learning Outcomes and Certification: PMIS internships should have predefined skill outcomes and end with nationally recognised certification aligned with NSQF, ensuring internships translate into measurable employability. 
• Strengthen Industry Accountability: Since companies are selected based on CSR spending, PMIS should require outcome reporting (completion, skill acquisition, placement) as part of CSR disclosures, similar to social audit norms under Indian welfare schemes. 
• Improve Candidate–Company Matching Using Skill Mapping: Lessons from Skill India Digital platforms show that poor matching reduces retention.  
  • PMIS should integrate skill profiling, location preference, and sector fit before offers are made. 
  • Following practices under NATS and international youth employment programmes, companies should receive incentives for high completion rates and post-internship hiring. 
• Decentralise Outreach Through Local Institutions: Use ITIs, polytechnics, and district employment offices, as done under PMKVY, to expand awareness beyond urban and elite institutions.

Conclusion 

The PMIS has strong intent but weak execution, as reflected in low fund utilisation and poor participation outcomes. Gaps in stipend levels, and internship quality have limited its impact so far. Course correction is needed to turn scale into meaningful employability gains. 

Drishti Mains Question:

How can India integrate internships, apprenticeships, and formal skilling into a coherent employability framework?

Frequently Asked Questions (FAQs) 

1. What is the Prime Minister’s Internship Scheme (PMIS)? 
PMIS is a Ministry of Corporate Affairs scheme launched in Budget 2024–25 to provide one crore internships in top companies over five years to improve youth employability.

2. Who is eligible for PMIS? 
Youth aged 21–24 years with minimum Class 10 qualification, not in full-time employment or regular education, are eligible. 

3. What are the key benefits under PMIS? 
A Rs 5,000 monthly stipend, a one-time Rs 6,000 grant, insurance coverage, and 12 months of industry exposure. 

4. What are the major concerns with PMIS implementation? 
Severe underutilisation of funds, low offer acceptance, poor completion rates, and inadequate financial incentives. 

5. How can PMIS be strengthened? 
By revising stipends, mandating skill certification, improving candidate–company matching, strengthening CSR accountability, and decentralising outreach.

UPSC Civil Services Examination Previous Year Question (PYQ)

Prelims

Q. With reference to Pradhan Mantri Kaushal Vikas Yojana, consider the following statements: (2018)

1. It is the flagship scheme of the Ministry of Labour and Employment.   
2. It, among other things, will also impart training in soft skills, entrepreneurship, and financial and digital literacy.   
3. It aims to align the competencies of the unregulated workforce of the country to the National Skill Qualification Framework.   

Which of the statements given above is/are correct? 

(a) 1 and 3 only 

(b) 2 only 

(c) 2 and 3 only 

(d) 1, 2 and 3   

Ans: (c) 

---

Mains

Q. “Demographic Dividend in India will remain only theoretical unless our manpower becomes more educated, aware, skilled and creative.” What measures have been taken by the government to enhance the capacity of our population to be more productive and employable? (2016)