In an ambitious move to bridge the skill gap and enhance employability among Indian youth, the Government of India has introduced the Employment Linked Internship (ELI) scheme. Announced in the Union Budget 2024, this scheme aims to provide one crore internships over the next five years in 500 top companies. With a focus on practical skill development and real-world experience, the ELI scheme is poised to revolutionise the employment landscape for the youth of India. 

Experts from the education industry highlight that the ELI scheme is designed to tackle one of India’s pressing challenges: unemployment. The scheme will offer eligible candidates a monthly stipend of Rs 5,000 and a one-time assistance of Rs 6,000. Additionally, the companies involved will bear the cost of training, contributing 10% of these costs as part of their corporate social responsibility initiatives. “This initiative not only provides financial support to the interns but also ensures that they receive valuable training and work experience,” Rozy Efzal, Co-founder and CMO, Invest4Edu, said.

The ELI scheme’s primary objective is to focus on practical work and skill development. Interns will spend at least half of their time in a job environment, gaining hands-on experience that is crucial for making them job-ready. Efzal emphasises that this practical experience is what sets the ELI scheme apart from traditional classroom-based learning. By immersing interns in real-world job environments, the scheme aims to equip them with the skills and knowledge needed to thrive in their chosen careers.

Who is eligible for the scheme and who is not?

The scheme targets a specific demographic to maximise its impact:

– Youth aged 21-24 who are not employed or engaged in full-time education.

– Alumni of premier institutions like IITs, IIMs, and IISERs are not eligible.

– Holders of CA and CMA degrees are excluded.

– Candidates with family members who are government employees or income tax payers are also ineligible.

Despite these exclusions, a vast majority of freshly graduated students will benefit from the scheme, providing them with a stepping stone into the professional world.

Meanwhile, the exclusion of alumni from premier institutions like IITs, IIMs, and IISERs from the ELI scheme has caused considerable concern among students from these institutions. In light of this, an IIT student, speaking anonymously to the Financial Express, said, “As an IIT student, I’m concerned about the exclusion of alumni from premier institutions like ours from the ELI scheme. While the initiative aims to bridge the skill gap, it overlooks the fact that even students from top institutions face challenges in securing practical experience and employment.” Adding to that he said,  “The scheme could have been more inclusive, providing opportunities to all deserving candidates regardless of their educational background. By excluding us, the policy might inadvertently widen the gap it seeks to close.”

“Companies must ensure interns are engaged in actual work related to the firm’s core activities. At least half of the internship time should be spent in real job environments rather than classroom settings. If a company cannot provide direct experience, it should collaborate with its supply chain or group companies to offer relevant internships,” Shivpriya R. Sumbha, Head, Marketing and Inbound Sales,Nuvepro, said.

Invest4Edu, an education planning company believes that the ELI scheme is a significant step towards addressing unemployment and improving industry standards in hiring. By developing professional skills among underprivileged youth, the scheme aims to create a trained workforce that can drive economic growth and stability. However, Efzal points out several questions that need to be addressed for the scheme to realise its full potential.