Parliament Question: Effectiveness of PM Internship Scheme

GOVERNMENT OF INDIA MINISTRY OF CORPORATE AFFAIRS LOK SABHA UNSTARRED QUESTION NO. 1273 ANSWERED ON MONDAY THE 27TH JULY, 2026 SHRAVANA 5, 1948 (SAKA) EFFECTIVENESS OF PM INTERNSHIP SCHEME QUESTION

1273. Shri Asaduddin Owaisi:

Will the Minister of CORPORATE AFFAIRS be pleased to state:

(a) whether the Government is aware that, according to data from the Controller General of Accounts, the Ministry spent only Rs.500 cr (~4 per cent) out of the Rs.11500 cr budget in the first 8 months of the FY 2025-26 on the Prime Minister Internship Scheme, when nearly 94 percent of the allocation (Rs.10,800 cr) was earmarked for it;

(b) if so, the reasons for such a shortfall in the expenditure amid high rate of unemployment among the youth in the country;

(c) whether the Government has assessed the reasons for the low acceptance of internship offers and the high dropout rate of interns, despite lakhs of applications being received, if so, the details thereof; and

(d) the corrective measures being taken to improve the uptake, utilization of funds and overall effectiveness of the PMIS? ANSWER MINISTER OF STATE OF THE MINISTRY OF CORPORATE AFFAIRS AND MINISTRY OF ROAD TRANSPORT AND HIGHWAYS [SHRI HARSH MALHOTRA]

(a)&(b): The PM Internship Scheme announced in the Budget 2024-25, 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 work force. The scheme is not designed to provide employment.

As an initiation to this Scheme, Ministry of Corporate Affairs launched a Pilot Project of the Scheme on 3rd October, 2024, which is targeted to provide 1.25 lakh internship opportunities. Details of amount sanctioned and utilized for the Prime Minister Internship Scheme Pilot Project in FY 2025-26 is as under:

(Amount in Rs. Crore) S. Financial Budget Revised Actual Expenditure in Actual No. Year Estimates Estimates the first 08 months expenditure in F.Y (as on 30.11.2025) 2025-26 (as on

31.03.2026)

1. 2025-26 10831.07* 526 59.16 96.98*Rs. 10831.07 crore was allocated to the Ministry for the main Scheme. However, the main scheme could not be commenced, and Pilot Project of PM Internship Scheme was implemented in FY 25-26.

(c): On the basis of independent evaluation and feedback survey carried out by the Ministry of Corporate Affairs, feedback received from various stakeholders, such as candidates, industry & industry associations and state governments, reasons behind acceptance rate of internship offers and the dropout rate of interns in Round I & II of

the PMIS Pilot Project are given below: • Internship period of 12 months was longer than that in other skilling programs. • Location is an important consideration and ideal travel distance indicated by candidates should be between 5-10 km.

• Some candidates are not interested in roles offered.

Pilot Project is a pivotal phase that has allowed for testing concepts, strategies and systems before a full-scale implementation.

(d): Based on the learning during the implementation of the Round I and Round II of the PMIS Pilot Project, following measures have been taken: i. As per the revised guidelines of the PMIS Pilot Project issued vide O.M. dated

12.03.2026 following key changes have been made: a. A flexible duration of internships of either 6 or 9 months based on the company’s requirements is provided. b. The monthly allowance has been enhanced from Rs. 5000 to Rs. 9000.

c. The age requirement for youth has been relaxed from 21–24 to 18–25 years. Further, candidates who have a master’s degree and students from final year of graduation/post-graduation are eligible to participate.

d. Scope of companies/organisations eligible to participate has been expanded. e. Adopted a rolling internship cycle allowing continuous posting, selection, and onboarding. ii. Portal Improvement: functionality for geo-tagging internship location, moving vacancies and candidates between one location to another and, more visibility of additional benefits given by companies to the candidates.

iii. Targeted Information, Education and Communications (IEC) activities. iv. Active engagement and coordination with States, UTs, Ministries and Departments of the Central Government and Industry Associations for enhancing the outreach of the scheme.

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