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Our youth are the driving force of India's future, brimming with immense potential and ambition. With over 50% of India’s population under the age of 25, the country boasts the highest youth population in the world. However, the critical challenge remains in bridging the chasm between education and employability. With approximately 12 million new entrants joining the workforce each year, it is crucial to equip students with practical, industry-relevant skills that will prepare them for an evolving job market. Alarmingly, 48.75% of youth still face significant employability barriers. While apprenticeships have made strides in addressing this issue, the PM Internship Scheme represents a vital addition to the amalgamation of efforts aimed at propelling growth forward and bridging the gap, offering crucial hands-on experience and industry exposure for young professionals.

What is the PM Internship Scheme?

The PM Internship Scheme, introduced as part of the Employment Linked Incentive (ELI) scheme, was announced by Hon'ble Finance Minister Ms. Nirmala Sitharaman during the 2024-2025 Union Budget. The first phase of the scheme officially came into effect on October 3, 2024. As a bold initiative, the scheme aims to enhance skilling and employability among the youth by providing industry-relevant, practical training through internships directly linked to job opportunities. In its pilot phase, the scheme is set to reach 1.25 lakh youth by the end of 2024-2025, with an ambitious goal to impact 1 crore young individuals across India over the next five years. This initiative not only seeks to bridge the gap between academic learning and real-world industry needs but also aligns with India’s broader mission of preparing its workforce for the challenges of a rapidly evolving job market.

Launched by the Ministry of Corporate Affairs, the PM Internship Scheme is designed to provide internship opportunities in the top 500 companies across diverse sectors for a period of one year (12 months). By exposing young individuals to the inner workings of leading industries, the scheme enables them to gain valuable experience, industry-relevant skills, and practical knowledge that will make them more competitive in the job market. The program emphasizes a "learning while earning" and "learning by doing" model, empowering participants to develop workplace competencies in real-time environments. To support interns financially, the scheme offers a monthly stipend of ₹5,000 and a one-time allowance of ₹6,000, ensuring that a wider range of youth can participate in this valuable opportunity. Over the next five years, the PM Internship Scheme will offer 10 million internships, helping to cultivate a generation of skilled professionals equipped to succeed in their chosen careers. By providing this critical experience, the scheme not only boosts employability but also fosters professional networks and lays the foundation for sustainable, long-term career growth for India’s youth.

How Apprenticeships Complement the PM Internship Scheme

The PM Internship Scheme (PMIS) is a pivotal step in addressing India’s employability challenges, offering youth from Tier II and Tier III colleges structured, real-world experiences coupled with financial support. By focusing on candidates aged 21–24 and excluding graduates from premier institutions, the scheme ensures inclusivity for underrepresented groups. However, while PMIS provides short-term experiential learning, apprenticeships complement this by offering long-term, structured training that combines on-the-job learning with classroom education. Industries such as manufacturing, IT, and sales particularly benefit from apprenticeship programs, as they enable participants to gain practical skills while earning a stipend, enhancing both retention and career progression.

Supporting this ecosystem are the National Apprenticeship Promotion Scheme (NAPS) and the National Apprenticeship Training Scheme (NATS). NAPS provides financial support of up to ₹1,500 per month via Direct Benefit Transfer (DBT) and includes a broader demographic, starting as early as the fifth grade. NATS focuses on structured training for graduates, diploma holders, and vocational certificate holders, offering government reimbursements of up to ₹4,500 per month. Together, these initiatives address skill gaps and improve retention, helping organizations onboard skilled manpower while equipping individuals with critical industry-relevant expertise. This dual approach of short-term internships and long-term apprenticeships creates a future-ready workforce, aligning with the demands of India’s growing economy.

Strengthening Skilling with a Dual Approach

India faces an urgent need for skilled workers, as highlighted by a recent NSDC study projecting a requirement of 103 million skilled individuals against an available supply of 74 million. The PM Internship Scheme directly addresses this gap by democratizing access to skill-building opportunities through structured internships and financial incentives. Participants receive ₹5,000 as a monthly stipend and a one-time allowance of ₹6,000, enabling them to "learn by doing" and "earn while learning." This initiative empowers youth to complement their academic knowledge with real-world exposure, building critical skills and professional networks essential for thriving in competitive industries.

Apprenticeships enhance this effort by offering hands-on, long-term training tailored to industry needs. They provide structured pathways that blend practical experience with theoretical knowledge, enabling participants to develop in-demand skills while reducing attrition rates. Programs like NAPS and NATS play a critical role in this skilling ecosystem, addressing low skill levels and productivity gaps through government-supported training models. Together, these initiatives ensure that India’s workforce is equipped to meet the evolving demands of its industries, fostering economic growth and creating opportunities for underserved communities.

Discover more about the evolving skilling landscape and the PM Internship Scheme in the recent Businessline feature, highlighting insights from our CEO, Mr. Ramesh Alluri Reddy, here.