- The PM Internship Scheme spent only Rs 73.72 crore of Rs 840 crore pilot budget in its first year
- Only 31.86% of the 1.65 lakh internship offers were extended to women under the scheme
- The scheme does not guarantee job placements and lacks centrally tracked placement data
The Prime Minister Internship Scheme (PMIS), a major government initiative launched to cultivate a "job-ready, skilled work force, has spent barely Rs 73.72 crore out of an approved Rs 840 crore pilot allocation in its first year while the government has ballooned the budgetary outlay more than thirteen-fold to Rs 10,831 crore for 2025-26, raising sharp questions about utilisation, efficacy and fiscal prudence.
Official data tabled in Parliament on Tuesday in response to questions posed by MP Sagarika Ghose revealed that even as the scheme failed to exhaust even 9% of its pilot funds, only 31.86% of the 1.65 lakh internship offers extended so far have gone to women, and the programme, despite being projected as a bridge to employment, is not designed to guarantee jobs, with no placement offers mandated and none centrally tracked. State-wise placement data was also not furnished.
Scheme's Ambitious Goals vs. Ground Reality
The PMIS was announced in the Union Budget 2024 with the visionary aim of providing one crore internship opportunities over five years in India's top 500 companies. Its core purpose, as stated by the Ministry of Corporate Affairs, is to "enhance industry-relevant skills, improve job readiness, and foster professional exposure" through structured, 12-month internships. The pilot project, initiated in October 2024, set an initial goal of 1.25 lakh opportunities in one year, demonstrating the government's seriousness.
However, the financial reality is stark. While an initial Rs 840 crore was approved for the pilot project (part of a broader Rs 2000 crore allocation for FY 2024-25), the Revised Estimate for the same period was drastically cut to Rs 380 crore. As of September 30, 2025, only approximately Rs 73.72 crore has been utilized, highlighting a systemic failure to spend and execute the program effectively. This administrative failure is alarming, especially as the government has proposed a massive allocation of Rs 10,831.07 crore for the scheme in FY 2025-26.
High Offers, Low Takers, and Premature Exits
The scheme's pilot project has struggled immensely to gain traction among young applicants. Govt data shows that Across two rounds, companies made a total of 1.65 lakh internship offers. Yet, only 33,300 offers, or a mere 20% of the total, were accepted by candidates. This indicates a disconnect between the opportunities provided and what India's youth are seeking. Furthermore, a substantial number of those who did accept the offer chose to leave early: "one-fifth of participants left their internships before completing them," totalling 6,618 premature exits. In the first round, more than half of the candidates who started their internships quit before finishing.
Key Hurdles: Location, Duration, and Role Mismatch
Feedback gathered by the Ministry of Corporate Affairs provides clear reasons for the abysmal acceptance and high dropout rates. The most cited issues concern logistics and suitability. Candidates noted that location was a significant barrier, indicating an "ideal travel distance... between 5 km and 10 km." This suggests that the cost and inconvenience of relocating for the Rs 5,000 monthly stipend are proving prohibitive, especially in large cities. The mandated 12-month internship periodwas also identified as being "longer than in normal skilling programs," likely conflicting with continuing education or other professional goals. Finally, a considerable number of candidates were simply "not interested in the roles offered," pointing to an issue with the quality or relevance of the opportunities sourced from the partner companies. Despite offering 52,827 offers (31.86% of total) to female candidates, the scheme's fundamental design issues have overshadowed its efforts toward inclusivity.
The Ministry has acknowledged these challenges and is reportedly preparing a Cabinet note to implement changes, including potential upward revisions of the stipend and a shift toward a flexible internship duration of between six and 12 months, along with clearer geo-tagging of opportunities.
