The wholesale changes in the PM Internship scheme (PMIS) is likely to have a significant impact on the performance of the scheme after a weak show over the past 18 months since its launch in October 2024. As per officials, the government is expecting at least 100% improvement in the amount of interns joining the companies in the third round of the scheme which kicked off on March 20.
“We are expecting a minimum intake of 30,000 candidates (by companies) in the current round. The industry and the candidates were facing a lot of challenges. Based on their suggestions, the scheme has been modified to a large extent to increase participation,” an official told FE.
The official said that even though there are no targets set for the third round – unlike the pilot project which had a target of 1,25,000 interns – the government is expecting that at least 1,00,000 opportunities that will be posted by companies in this round.
“As per the industry thumb rule, we hope that 30% of the candidates will be hired as interns,” the official said.
Expanding the Corporate Pool
The revised guidelines include raising the monthly stipend to Rs 9,000 per month, up from Rs 5,000 in the first two rounds. The corporate social responsibility (CSR) spending creteria has also been waived off to expand the pool of companies (who can participate) from 500 to over 2,000. Previously, companies with the highest CSR spending in the country were allowed to hire the interns through PMIS.
Further, the ministry of corporate affairs (MCA) has also permitted sunrise sectors such as semiconductor manufacturing, global capability centers (GCCs) and renewables to take part in the hiring process.
“The increase in stipend to Rs 9,000 is significant, especially for candidates in tier-II and III markets, where affordability directly impacts decision-making. Equally important is the move to open up participation beyond a limited set of companies. This will improve role diversity across sectors like manufacturing, logistics, and emerging areas such as semiconductors, where there is real demand for entry-level talent,” said Deepesh Gupta, director and head (general staffing) at Adecco India.
To attract a higher pool of candidates, there’s now a relaxation in the age and qualification criteria. Candidates within 18-25 age bracket can apply under the revised norms, up from a narrow zone of 21-24 years previously. This will open up the scheme to a larger talent pool, especially the younger population who have ITI certification or polytechnic diplomas, giving them the option to start working earlier.
Experts said that the course correction in the PMIS reflects a clear shift from a volume-led pilot to a more market-aligned workforce model. “The tweaks are going to have a significant impact on the scheme’s effectiveness and response levels. We expect the quality of candidates applying for internships to also improve,” said Sougata Roy Choudhury, executive director at Confederation of Indian Industry (CII).
By accommodating the preferences of companies engaged in the services sector who typically require workers for a shorter-duration, the government has given the flexibility to companies to hire interns for shorter duration (6-9 months) as against a fixed 12-month tenure previously.
“Moving away from rigid 12-month tenures and restrictive CSR mandates lets companies across sectors participate with the agility they need. This dual approach to reducing friction for both our youth and the industry creates a true win-win ecosystem, ensuring the scheme can drive meaningful participation and realise its full potential this year,” said Nipun Sharma, CEO of TeamLease Degree Apprenticeship.
Addressing Attrition
In December, the government had flagged 20% dropout rate in the scheme primarily due to the location constraints and longer duration of the internships. As per data, the two rounds of the pilot projects, just 8,768 interns have completed their internships thus far, and 7,292 interns left their respective companies without completing the training. As such the scheme is witnessing a low acceptance rate with just about 33,000 candidates reported to have accepted the internships – far short of the 125,000 target.
Announced in the Budget 2024-25, PMIS aims to provide internship opportunities to 10 million people over five years. The scheme is designed to enhance industry-relevant skills, improve job readiness, and foster professional exposure through structured internships in India’s top-performing companies and institutions to create job-ready, skilled workforce.