Mint Primer | PM Internship scheme: will it be a game changer?

What is the internship scheme about?

The PM Internship Scheme, announced in the FY25 budget, will offer 12-month internships in top companies to 10 million youth over five years, for a stipend. Some 125,000 offerings are on the table already from about 280 companies, as per data available on a portal dedicated to the scheme run by the ministry of corporate affairs. There are over 35,000 offers for graduates, followed by 31,500 for candidates who have passed class 10, and over 30,000 for those with Industrial Training Institute certificates. Diploma holders have over 22,000 offers while candidates who have cleared class 12 have 8,800 offers.

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How will it benefit India Inc?

Firms point to unemployability even when there are openings. Additional investments are needed for skilling from their end when freshers join. The manufacturing and IT sectors, which hire in large numbers from campuses, are specially impacted as the training offered to the students is not at par with technologies used at work. An industry-ready workforce will also lessen the dependence on coaching centres in cities that offer skill-set certifications. Often, these programmes are taught by private sector employees moonlighting as teachers—their quality or the quality of the courses they teach could be dubious.

What are the challenges ahead?

For a programme of this scale, the government and companies must be committed for the long term. It cannot be a quick fix. Firms need to train the young workforce and follow up with a job offer so that they do not slip into unemployment again. For companies, this means training both the interns and those recruited for permanent placement.

Is the stipend attractive enough?

While the scheme can help the youth get industry-ready and get a job, the stipend may not be enough. Interns will get a monthly assistance of ₹4,500 from the government and ₹500 from the company, in addition to a one-time grant of ₹6,000 from the government to support them. Average daily wages, though not uniform, are often higher than this stipend amount. The scheme will need to advertise why getting trained in a relevant skill-set and updating oneself is important for a more secure livelihood.

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Shouldn’t schools and colleges have a role?

When firms hold introductory meetings with students, typically they are in their final years of graduation and post-graduation. Schools must invite firms to talk about the future of workforce and the skill-sets of tomorrow at an earlier stage. The curriculum needs to be updated and students taught to focus on their strengths. This is key in tier II and III cities where many students head for coaching centres to pursue engineering and medical degrees. In many cases, they aren’t aware of other degrees or jobs in demand.