PM’s Internship Scheme Likely To Undergo Changes In 2025 Union Budget To Expand Reach

The scope of The Prime Minister's Internship Scheme is expected to be widen as Finance Minister Nirmala Sitharaman is likely to bring some changes, Deccan Herald reported citing sources.

Introduced in the Union Budget 2024-25 as part of a ₹2 lakh crore package for job creation and skill development, the Prime Minister's Internship Scheme may soon see modifications to broaden its scope. The changes are being considered to include more companies and candidates in this ambitious initiative.

Current Framework for Companies

Presently, only the top 500 companies, identified based on their Corporate Social Responsibility (CSR) expenditure over the last three years, are eligible to participate. However, the eligibility criteria for companies are expected to be revised, allowing a larger pool of businesses to join the program.

Eligibility and Proposed Changes for Candidates

Currently, the scheme targets young Indian nationals aged 21 to 24 years who are neither in full-time employment nor enrolled in full-time education. Candidates must meet several criteria:

Educational qualifications can range from high school diplomas and ITI certificates to undergraduate degrees like BA, B.Sc, and B.Com.
Family income must not exceed ₹8 lakh per annum, and the candidate must not be a family member of a government employee.

Notably, graduates from premier institutions like IITs, IIMs, National Law Universities, and NIDs, as well as holders of professional degrees (CA, CMA, MBBS, etc.), are currently ineligible. Reports suggest some of these restrictions may be relaxed to accommodate a broader range of participants.

A Unique Approach to Skilling

The scheme distinguishes itself from other government-led skill development initiatives by focusing exclusively on internships. Designed as a 12-month program, it aims to provide 1.25 lakh internships across 24 sectors, including oil, energy, travel, automotive, and banking. The pilot project for 2024-25 has already begun, with applications open on the PM Internship Portal since October 2024.

Financial Support for Interns

Interns receive a monthly stipend of ₹5,000, of which ₹500 is contributed by partner companies, with the remaining ₹4,500 provided by the government through Direct Benefit Transfer (DBT). Additionally, interns are granted ₹6,000 as a joining allowance. Participants are also covered under government insurance schemes like the Pradhan Mantri Jeevan Jyoti Bima Yojana and Pradhan Mantri Suraksha Bima Yojana, with premiums fully paid by the government.

Involvement of Partner Companies

While the current focus is on the top 500 companies, the Ministry of Corporate Affairs plans to open the program to more businesses, including those from underrepresented sectors. Companies unable to directly offer internships may collaborate with entities in their supply chain or group.

A Step Towards India's Future Workforce

By providing real-world exposure and hands-on experience, the Prime Minister's Internship Scheme aims to enhance employability among India's youth. The proposed changes seek to expand the program's reach, ensuring more companies and candidates can benefit from this initiative.

As the government gears up to present the 2025 Union Budget, these anticipated modifications reflect a commitment to fostering a skilled workforce that can meet the challenges of a dynamic job market while contributing to the nation's economic growth.