Government Plans New Pilot for PM Internship Scheme as Candidate Dropouts Persist

The Central Government is set to launch another pilot phase for the Prime Minister’s Internship Scheme (PMIS) in the coming weeks, following high dropout rates in earlier phases, according to news reports.

The initiative, aimed at bridging the gap between education and employment, seeks to provide 1 crore internship opportunities over five years, with a pilot target of 1.25 lakh internships in the 2024-25 fiscal year. However, low acceptance rates and candidate dropouts have prompted the government to refine the scheme before its full-scale rollout later this fiscal year.

The PMIS, announced in the Union Budget 2024-25, is designed to offer 12-month internships with India’s top 500 companies, providing practical work experience to youth aged 21-24. The scheme targets candidates who have completed high school, hold ITI certificates, polytechnic diplomas, or degrees such as BA, B.Sc, B.Com, BCA, BBA, or B.Pharma.

Candidates from premier institutions like IITs, IIMs, or those with professional qualifications like CA or MBBS are excluded to ensure inclusivity for underrepresented groups. Interns receive a monthly stipend of ₹5,000—₹4,500 from the government and ₹500 from the company’s CSR funds—along with a one-time grant of ₹6,000 and insurance coverage under the Pradhan Mantri Jeevan Jyoti Bima Yojana and Pradhan Mantri Suraksha Bima Yojana.

Official data highlights the challenges faced in the initial pilots. In the first phase, only 8,700 candidates joined out of 28,000 who accepted offers. In the second phase, companies extended 72,000 offers by July 23, 2025, with 22,800 acceptances, and the final tally is expected to reach 28,000-29,000. Despite over 6 lakh applications in the first round and 1.27 lakh opportunities posted, only 6% of candidates who accepted offers joined their internships. Reasons for dropouts include parental and peer pressure, as well as the lack of affordable accommodation near internship locations.

To address these issues, the MCA has collaborated with state governments to enhance awareness through career counseling and workshops. “We are working with states to hold awareness camps with company executives to encourage participation,” a ministry official said. The government is also exploring solutions to provide accommodation support to interns, a key barrier cited by candidates. The upcoming pilot phase will test these measures to improve acceptance and retention rates.

The PMIS portal (pminternship.mca.gov.in) facilitates the application process, allowing candidates to register, generate resumes, and apply for up to five internships based on their preferences. The second round of the pilot, which closed on April 22, 2025, after multiple extensions, saw over 1 lakh opportunities offered across 730 districts. Companies like Mahindra & Mahindra, Max Life, and Alembic Pharma have participated, with the MCA identifying top firms based on their CSR expenditure over the past three years. Additional companies can join with ministry approval.

The scheme also incorporates a reservation policy for Scheduled Castes, Scheduled Tribes, Other Backward Classes, and persons with disabilities, aligning with government hiring norms. A grievance redressal mechanism and a multilingual helpline (1800-116-090) have been established to support candidates. The pilot phase, with a budget of ₹800 crore, is a precursor to the scheme’s broader implementation, which aims to equip youth with industry-relevant skills.

The MCA has not announced a specific timeline for the new pilot but indicated it would commence within a month. Candidates are advised to monitor the PMIS portal for updates on registration and opportunities. The government remains optimistic about the scheme’s potential to enhance employability, with over 500 companies already participating across sectors like banking, automotive, and manufacturing.