Prime Minister Internship Scheme (PMIS)
The Prime Minister Internship Scheme (PMIS) was introduced in the Union Budget 2024-25 as a strategic initiative for youth skilling in India. Its objective was to provide internships to 10 million young people over five years by partnering with the top 500 companies in the country, focusing on youth from Tier-II and -III cities.
Challenges and Early Evidence
- Two pilot programs were launched to assess the model before full implementation.
- The scheme faced a challenge not in company participation but in a mismatch between design and demand.
- Acceptance of internship offers fell by 12.4% between the first and second pilot rounds, despite an increase in the number of offers and company participation.
Government's Analysis and Feedback
- The Ministry of Corporate Affairs acknowledged issues like:
- Year-long duration of internships.
- Poor alignment between candidates' interests and the roles offered.
- Eligibility concerns, such as the age criterion.
- For candidates from smaller towns, relocating for modestly paid internships poses significant opportunity costs.
Scheme's Positioning and Employment Pathway
- While framed as a skilling and exposure program, it does not guarantee job placements.
- The lack of a clear employment pathway reduces its attractiveness in a market with high youth unemployment.
- Companies may offer jobs based on interns' performance, but this is uncertain.
State-wise Data and Outcomes
- Some states had high numbers of internship opportunities, but these did not always lead to participation.
- The real issue is converting offers into meaningful participation.
Funding and Utilization
- Despite a significant budget allocation, fund utilization was low, indicating weak ground-level absorption.
- In 2024-25, the initial budget was ₹2,000 crore, revised to ₹380 crore.
Recommendations for Improvement
- The PMIS concept is sound, aiming to bridge the skills-job gap.
- Before a nationwide rollout, the scheme needs recalibration:
- Shorten internship durations.
- Improve role-skilling matching.
- Prioritize local placements.
- Clearly signal employment outcomes.
