Despite ₹10,831 Crore Allocation, PM Internship Scheme Faces Low Fund Utilisation and Participation

The Prime Minister’s Internship Scheme (PMIS) has witnessed a substantial increase in budget allocation, rising fivefold from ₹2,000 crore in FY24-25 to ₹10,831 crore for FY25-26. Despite this, the scheme is struggling with low participation and slow fund utilisation.

Limited Utilisation of Allocated Funds

As of mid-February 2025, only ₹48.41 crore has been utilised from the initial ₹2,000 crore allocated for the scheme’s pilot phase. This slow uptake raises concerns about the scheme’s effectiveness and execution.

Overview of the PM Internship Scheme

PMIS was introduced in the Union Budget 2024-25 with the ambitious goal of providing one crore internships over five years. The scheme’s pilot phase aimed at offering 1.25 lakh internships in FY24-25 to provide hands-on experience to students and young professionals across various sectors.

Participation Numbers Fall Short

Despite the availability of 1.27 lakh internships in the initial phase, only 28,000 candidates have accepted offers, and just 8,700 have officially joined. The second phase of the program, launched in January 2025, introduced 1.15 lakh new and revised internship listings, but participation data for this phase remains unclear.

Key Challenges Hindering Scheme Implementation

Several hurdles have contributed to the low participation and slow fund utilisation, as highlighted by the Parliamentary Standing Committee on Finance:

1. Internship Location Barriers – Many candidates find the assigned locations too far from their homes, discouraging them from enrolling.

2. Mismatch Between Roles and Expectations – The available internships do not always align with candidate qualifications or career aspirations, leading to hesitation in participation.

3. Extended Internship Duration – The standard 12-month duration is perceived as too long, making it difficult for students and young professionals to commit.

Recommendations from Evaluation Agencies

Leading institutions such as IIM-Bangalore, Delhi School of Economics, and Symbiosis Institute of Business Management have provided feedback to improve the scheme’s efficiency:

• Enhancing internship transparency by displaying company names and geotagging locations.

• Refining the PM Internship portal’s user interface for a smoother application process.

• Aligning internship offerings more closely with candidate preferences and career aspirations.

Changes Implemented in the Second Phase

Based on initial feedback, the government has made several modifications in the second phase of PMIS:

• Transparent Listings – Internship details now include company names, making it easier for candidates to evaluate options.

• Geotagging for Better Accessibility – Internship locations are now clearly marked to help applicants select opportunities within a reasonable distance.

• Improved User Experience – The PM Internship portal has been updated for a more user-friendly application process.

The Road Ahead for PMIS

While the government has taken steps to address challenges, the success of the PM Internship Scheme depends on increasing awareness, improving accessibility, and ensuring that internship opportunities align with market demands. Future modifications and active engagement with stakeholders will be crucial to achieving the scheme’s long-term goals.

Conclusion

The Prime Minister’s Internship Scheme (PMIS) was launched with an ambitious vision to provide one crore internships over five years, fostering skill development and enhancing employment opportunities for young professionals. However, despite a significant budget increase, the scheme has faced challenges in implementation, including low participation, slow fund utilization, and logistical hurdles such as distant internship locations, role mismatches, and program duration concerns.

To improve the scheme’s effectiveness, addressing these issues through better transparency, enhanced accessibility, and increased industry engagement is essential. The recent changes, including clearer internship details, geotagging, and user-friendly portal upgrades, indicate a step in the right direction. However, sustained efforts will be needed to ensure that PMIS fulfills its objectives and successfully bridges the gap between job seekers and opportunities, ultimately contributing to India's workforce development.