New Delhi: The government seeks to expand the coverage of the PM internship scheme for FY26 by sharply increasing the budget allocation for the ministry of corporate affairs that administers the programme, aimed at boosting skills and employability of the country’s youth.
For the scheme, the government has allocated ₹10,831 crore for FY26, more than 27 times the funds earmarked for this fiscal year, budget documents showed, indicating that the government is aiming to finance 1.8 million interns next year.
The scheme entails an annual government spending of ₹60,000 on each of the candidates who takes up internship. To meet the five-year target of offering 10 million internships in the largest 500 companies, the government needs to facilitate internship opportunities to about two million every year. The funds earmarked for next fiscal are broadly in line with the annual target.
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In the first phase of the scheme rolled out last October, 127,000 internship opportunities were on the table. Companies offered over 82,000 positions to over 60,800 candidates, out of which over 28,000 candidates accepted the offers, minister of state for corporate affairs Harsh Malhotra told the Lok Sabha on 3 February. Against those who accepted the offer, ₹4.38 crore has been released as one-time grant to 7,304 candidates who have joined so far.
What experts say
Experts pointed out that new schemes sometimes take time before they reach all potential beneficiaries, and awareness campaigns can help expand the adoption of such programmes.
The higher budget allocation for next fiscal aligns with the overarching goal of enhancing and strengthening youth employability, said Sumit Kumar, chief strategy officer at TeamLease Degree Apprenticeship.
“However, creating more opportunities requires active participation from employers, who must step forward to offer internships under the scheme. Additionally, from a policy perspective, internships that are an integral part of undergraduate programs should also be recognized within the scheme to ensure broader inclusion and impact,” said Kumar.
The internship scheme seeks to make the youth more employable as having the right skills needed in the industry has become crucial given that work is getting reshaped by technology, climate considerations and increasing capital to labour ratio.
Employment generation is a priority for the government, as more than two-thirds of India’s population (68%) is in the working age of 15-64 years, according to data available from the UN.
Under the scheme, the government gives a one-time assistance of ₹6,000 and a monthly stipend of ₹4,500 to interns, while companies meet the training costs and make a monthly payment of ₹500 from their corporate social responsibility funds.
