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The first phase of the PM Internship Scheme, introduced as part of the series of the Employment Linked Incentive (ELI) scheme, announced by Hon'ble Finance Minister Ms. Nirmala Sitharaman in the 2024-2025 Union Budget, has officially come into force. Launched on October 3, 2024, the pilot phase of the scheme aims to reach 1.25 lakh youth in the year 2024-2025 and 1 crore young individuals across India over the next five years and focuses on enhancing skilling and employability among the youth by providing industry-relevant, practical training through internships that are directly connected to job opportunities. 

With the scheme now in full swing, we’ve put together a practical guide to help businesses not only stay ahead of the curve but also recognize its potential in boosting youth employability across India.

Here, let's dive in. 

What is the PM Internship Scheme?

The PM Internship Scheme, launched by the Ministry of Corporate Affairs, is a significant initiative by the Government of India aimed at providing internship opportunities for youth in the top 500 companies across diverse sectors for a duration of one year (12 months). This program seeks to expose young individuals to real-world business environments, enabling them to acquire essential skills and practical experience that enhance their employability. Over a period of five years, the scheme is set to offer 10 million internships, empowering the next generation of skilled professionals. Furthermore, it emphasizes 'Learning while Earning' and 'Learning by Doing', allowing interns to gain valuable experience and develop competencies directly applicable in the workplace.

The scheme provides a monthly  stipend of Rs. 5,000 and a one time allowance of Rs. 6,000 to support interns during their training, making the program accessible to a broader range of participants. By facilitating internships for 10 million young individuals, the PM Internship Scheme aims to foster a workforce that is well-prepared to meet the challenges of the modern job market. Through this initiative, interns will have the opportunity to cultivate their skills, build professional networks, and embark on successful career paths in their respective fields.

Who is eligible as an Intern under the scheme?

To participate in the PM Internship Scheme, applicants must meet several criteria designed to ensure the program targets the appropriate demographic, including:

1. You must be an Indian citizen.

2. You must be aged between 21-24 years (as of the last date for submission of the application).

3. You must not be employed full-time or engaged in full-time education (candidates enrolled in online or distance learning programmes are eligible).

4. You must have completed one of the following:

• Secondary School Certificate (SSC) or its equivalent

• Higher Secondary Certificate (HSC) or its equivalent

• Certificate from an Industrial Training Institute (ITI)

• Diploma from a Polytechnic Institute

• Graduation degree such as BA, B.Sc, B.Com, BCA, BBA, B.Pharma, etc.

While the eligibility criterias are defined, individuals below 21 or above 24 years of age on the application deadline, those engaged in full-time employment or education, and graduates from prestigious institutions such as IITs and IIMs are ineligible. Furthermore, individuals with advanced qualifications or those currently enrolled in government-sponsored training programmes will not qualify. Applicants whose family members have an income exceeding ₹8 lakh for FY 2023-24 or who have a permanent government employee in their family will also be ineligible to apply under the scheme.

Who are the eligible companies under the scheme?

The selected companies for the PM Internship Scheme include the top 500 organizations across India, chosen based on their Corporate Social Responsibility (CSR) contributions over the past three years. These industry leaders represent a variety of sectors, such as manufacturing, technology, finance, and healthcare, and are recognized for their commitment to providing quality internship experiences. As the program progresses, more businesses, banks, and financial institutions may be added to the list of participating companies, subject to approval from the Ministry of Corporate Affairs (MCA).

To know please check out the list here 

What are the types of Internships available?

Eligible candidates will have the opportunity to secure internships in a variety of roles across multiple sectors, including IT and Software Development, Banking and Financial Services, Oil, Gas & Energy, Metals & Mining, FMCG (Fast-Moving Consumer Goods), Telecom, Infrastructure & Construction, Retail & Consumer Durables, Cement & Building Materials, Automotive, Pharmaceutical, Aviation & Defence, Manufacturing & Industrial, Chemical, Media, Entertainment & Education, and Agriculture and Allied Services, as well as Consulting Services.

What will be the Mode of Training?

The PM Internship Scheme offers a structured blend of learning through both formal training and hands-on, practical experience. At least six months of the internship will be spent immersed in a real-world professional environment, providing valuable exposure to day-to-day operations and job-specific tasks. While certain portions of the internship will focus on relevant classroom-based training, the emphasis is on equipping interns with industry-relevant skills through direct, on-the-job experience. This approach ensures that participants not only gain theoretical knowledge but also apply it in real-time, fostering a deeper understanding of their chosen sector and enhancing their employability.

What Financial Assistance and Benefits will Interns Receive under the PM Internship Scheme?

As a participating company in the PM Internship Scheme, organizations will provide each intern with financial assistance in the form of a ₹500 monthly stipend, which will be released based on the intern’s attendance, good conduct and company policies. Additionally, the Government of India will contribute ₹4,500 each month directly to the intern’s Aadhaar-linked bank account through the Direct Benefit Transfer (DBT) system, easing the financial load on the company while ensuring interns receive full support. Upon joining, interns will also receive a one-time grant of ₹6,000 from the Government. Beyond these financial incentives, the company may also choose to offer an additional accidental insurance coverage, supplementing the government-provided insurance under Pradhan Mantri Jeevan Jyoti Bima Yojana and Pradhan Mantri Suraksha Bima Yojana, with the government covering the premium for these policies. 

How will the PM Internship Scheme benefit Businesses and Education?

The PM Internship Scheme presents a significant opportunity for businesses to access a diverse pool of young talent eager to contribute and grow. By participating in this initiative, companies can engage with motivated interns who bring fresh perspectives and innovative ideas. This infusion of new talent allows organizations to address immediate skill gaps while also fostering a culture of continuous learning and development. As interns gain practical experience within the company, they become familiar with the organizational culture and processes, paving the way for smoother transitions into full-time roles. Furthermore, businesses can shape these interns into industry-ready professionals by providing targeted training and mentorship, ensuring that the skills they develop align closely with the company’s specific needs.

Work-integrated learning programs, such as those offered through the PM Internship Scheme, represent the future of education in India by bridging the gap between academia and industry. This model promotes a 'Llearning by Doing' approach, where theoretical knowledge is enhanced through practical application in real-world settings. As educational institutions and businesses collaborate to design relevant training curricula, students emerge better equipped to meet the demands of the evolving job market. This partnership not only supports the development of a skilled workforce but also contributes to higher retention rates, as interns who have experienced a positive learning environment within the company are more likely to remain loyal to their employers. By investing in such programs, businesses position themselves as leaders in talent development, driving innovation and competitiveness for a future ready workforce. 

The scheme is a transformative initiative aimed at enhancing the employability of India’s youth by providing meaningful internship opportunities across various industries. By connecting young individuals with leading companies, the scheme not only equips them with essential skills and practical experience but also fosters a culture of continuous learning within organizations. As businesses engage with motivated interns, they not only address immediate skill gaps but also invest in the future of their workforce, shaping industry-ready professionals tailored to their specific needs. By bridging the gap between academic knowledge and practical application, it ensures that students emerge better prepared to tackle the challenges of the evolving job market. As the PM Internship Scheme gains momentum, it stands to create a skilled workforce that not only meets current demands but also drives innovation and growth for years to come.

To fully leverage the benefits of the PM Internship Scheme and gain deeper insights into how apprenticeships and internships can enhance your talent strategy, connect with us today. Discover how our innovative workforce solutions can help you build a sustainable talent pipeline by seamlessly integrating academic learning with hands-on training. Together, we can create pathways that help you  prepare the next generation of sustainable talent pipeline for your workforce.

To know more about the scheme and its benefits for your business, connect with us today!