Overview
The PM Internship Scheme (PMIS) was announced in the Union Budget 2024-25 to provide internship opportunities to one crore youth in India’s top 500 companies over a five-year period. Launched as a pilot project by the Ministry of Corporate Affairs, the scheme aims to bridge the gap between academic learning and industry requirements, enhancing employability among India’s large youth population.
The pilot phase (FY 2024-25) targeted 1.25 lakh internships spanning 24 sectors. The PMIS Mobile App was officially launched by Finance Minister Nirmala Sitharaman on 17 March 2025. Phase 2, launched in January 2025, expanded opportunities to over 1.18 lakh internships across 735 districts with 327 participating companies.
| Parameter | Detail |
|---|---|
| Announced | Union Budget 2024-25 |
| Nodal ministry | Ministry of Corporate Affairs |
| Target | 1 crore internships in 5 years in top 500 companies |
| Pilot target (FY 2024-25) | 1.25 lakh internships |
| Internship duration | 12 months |
| Age eligibility | 21-24 years |
| Family income cap | Rs 8 lakh per annum |
| Monthly stipend | Rs 5,000 (Govt: Rs 4,500 via DBT + Company: Rs 500 from CSR) |
| One-time grant | Rs 6,000 via DBT |
| FY 2025-26 BE | Rs 10,831 crore |
| FY 2025-26 RE | Rs 526 crore (95% cut) |
| FY 2026-27 BE | Rs 4,788 crore |
| Sectors covered | 24 sectors |
Eligibility Criteria
Who Can Apply
- Indian nationals aged 21-24 years
- Not employed full-time and not enrolled in full-time education
- Family income below Rs 8 lakh per annum
- Educational qualification: High School, Higher Secondary, ITI, Polytechnic diploma, or undergraduate degrees (BA, B.Sc, B.Com, BCA, BBA, B.Pharma, etc.)
Who Cannot Apply
- Graduates from premier institutions: IITs, IIMs, IISERs, National Law Universities
- Holders of professional degrees: CA, MBBS, BDS
- Holders of any master’s or higher degree
- Currently employed full-time or in full-time education
Financial Assistance
The financial support is shared between the Government and participating companies:
| Component | Amount | Source |
|---|---|---|
| Monthly stipend (Government share) | Rs 4,500 | Direct Benefit Transfer (DBT) |
| Monthly stipend (Company share) | Rs 500 | Corporate Social Responsibility (CSR) funds |
| Total monthly stipend | Rs 5,000 | — |
| One-time grant | Rs 6,000 | DBT |
| Total for 12 months | Rs 66,000 | — |
Application Process
- Applications are submitted online at pminternship.mca.gov.in or via the PMIS Mobile App
- Aadhaar-based registration with eKYC verification
- AI-powered matching of candidates with companies based on skills, location, and sector preferences
- Candidates can apply for up to 5 internship opportunities per application cycle
- Companies post internship opportunities on the portal; matched candidates are shortlisted
Sectors Covered
The scheme covers 24 sectors including:
- Oil, gas, and energy
- Banking and financial services
- Automotive
- Travel and hospitality
- IT and IT-enabled services
- Pharmaceuticals
- FMCG and retail
- Manufacturing and engineering
- Telecom
- Infrastructure and construction
Pilot Phase Performance
Round 1 (Late 2024)
- 1,81,000 candidates applied for 1,27,508 positions
- 82,077 offers extended; only 28,141 accepted
- 8,725 candidates physically joined
- Only 3,417 completed the full 12-month internship (21.3% completion rate)
Round 2 (Mid 2025)
- Over 70 new companies joined
- Candidate acceptance rates dropped by 12.4% compared to Round 1
- Phase 2 expanded to 1.18 lakh internships across 735 districts with 327 companies
Key Challenges Identified
- High dropout rate: 44% dropout since launch; 7,094 of 16,060 joined candidates exited before completion
- Low acceptance: Of 28,000 candidates offered internships, only 8,725 joined
- Location constraints: Many candidates unwilling to travel beyond 5-10 km
- Duration issue: 12-month commitment longer than most skilling programmes
- Gender imbalance: 72% male, only 28% female among selected interns
- Role mismatch: Limited interest in the specific roles offered by companies
Budget Trajectory
The budget allocation tells the implementation story:
| Year | Budget Estimate | Revised Estimate |
|---|---|---|
| FY 2025-26 | Rs 10,831 crore | Rs 526 crore (95% cut) |
| FY 2026-27 | Rs 4,788 crore | — |
The dramatic cut from Rs 10,831 crore BE to Rs 526 crore RE in FY 2025-26 reflects the weak uptake during the pilot phase. The FY 2026-27 allocation of Rs 4,788 crore is a recalibration — lower than the original ambition but significantly higher than the revised FY 2025-26 estimate.
Major Participating Companies
The pilot phase included major corporates such as:
- Tata Consultancy Services (TCS)
- Reliance Industries
- HDFC Bank
- Mahindra & Mahindra
- Maruti Suzuki India
- Larsen & Toubro (L&T)
Latest Developments
- Monthly stipend raised to Rs 9,000 (from Rs 5,000) effective March 2026 to improve participation and reduce dropout rates
- PMIS Mobile App launched on 17 March 2025 by Finance Minister Nirmala Sitharaman, enabling seamless applications and real-time opportunity tracking
- Phase 2 launched in January 2025 — expanded to 1.18 lakh internships across 735 districts with 327 participating companies, though only 24,638 of 83,696 offered candidates (29%) accepted
- High dropout rate persists — 7,292 candidates exited before completion as of March 2026; pilot Round 1 had only a 21.3% completion rate (3,417 out of 16,060 joined)
- Budget sharply recalibrated — FY 2025-26 allocation cut from Rs 10,831 crore (BE) to Rs 526 crore (RE), a 95% reduction; FY 2026-27 BE set at Rs 4,788 crore
- Third round expected with structural changes including shorter duration to address the 12-month commitment barrier that contributed to low uptake
- Gender imbalance remains a concern — 72% male and only 28% female among selected interns in the pilot phase
Prelims Importance
- PM Internship Scheme announced in Union Budget 2024-25
- Nodal ministry: Ministry of Corporate Affairs
- Target: 1 crore internships in top 500 companies over 5 years
- Duration: 12 months per internship
- Eligibility: Age 21-24, family income below Rs 8 lakh, not from premier institutions (IITs/IIMs)
- Monthly stipend: Rs 5,000 (Rs 4,500 from Govt via DBT + Rs 500 from company’s CSR funds)
- One-time grant: Rs 6,000 via DBT
- Application via pminternship.mca.gov.in portal with Aadhaar eKYC
- Candidates can apply for up to 5 internships per cycle
- AI-based matching system for candidate-company pairing
- FY 2026-27 budget: Rs 4,788 crore
- Pilot completion rate: only 21.3% (Round 1)
- Covers 24 sectors; PMIS Mobile App launched on 17 March 2025
Mains & Interview Importance
GS Paper 3 — Indian Economy: Employment, Skilling, Human Resource Development
- Critically evaluate PMIS as a response to India’s youth unemployment crisis — does a 12-month stipend-based internship create long-term employability or temporary absorption?
- Analyse the 21.3% completion rate in the pilot — what structural factors (location, duration, role quality) must be addressed for the scheme to scale?
- Discuss the role of the private sector (via CSR funds) in public employment/skilling schemes — is this a sustainable model or does it create perverse incentives?
- Compare PMIS with international internship/apprenticeship models (Germany’s dual system, UK’s apprenticeship levy) — what can India learn?
Interview Angles
- “Only 21% of pilot interns completed the programme. Does this indicate a design flaw or a deeper mismatch between youth aspirations and available opportunities?”
- “The scheme excludes IIT/IIM graduates but targets the 21-24 age group. Is this the right demographic segmentation for addressing India’s skilling gap?”
- “With a 44% dropout rate and 95% budget cut in the revised estimates, should PMIS be redesigned from scratch or incrementally improved?”
- “The gender imbalance (72% male) in PMIS reflects broader labour market challenges. What structural interventions can improve female participation?”
Sources: PIB, Ministry of Corporate Affairs, The Print, Business Standard, Wikipedia