Prime Minister’s Internship Scheme (PMIS)

Why in News?

Data from the Controller General of Accounts indicate severe underutilisation of funds under the Prime Minister’s Internship Scheme (PMIS), reflecting weaknesses in the scheme’s design, demand, and implementation barely a year after its launch.

What is the Prime Minister’s Internship Scheme (PMIS)?

About

• Announced in Union Budget 2024–25, implemented by the Ministry of Corporate Affairs.
• Aims to provide 1 crore internship opportunities over five years in the top 500 companies.
• Target group: Youth aged 21–24 years to enhance employability through real-world experience.

Benefits

• Minimum Stipend: ₹5,000/month.
• One-Time Grant: ₹6,000.
• Insurance Coverage: Under PMJJBY and PMSBY.
• Industry Exposure: Hands-on experience across diverse sectors.

Internship Duration

• 12 months, with at least 50% of time in real workplace environments (not classroom-based).

Eligibility

Ineligible Candidates

• Graduates from IITs, IIMs, NLUs, IISERs, and holders of professional/postgraduate degrees (CA, MBA, MBBS, etc.).
• Candidates trained under NAPS/NATS.
• Families with income > ₹8 lakh (FY 2023–24) or with regular govt employees.
• Candidates enrolled in any other government skill/apprenticeship programmes.

Significance

• Bridges the education–industry gap through structured, hands-on training.
• Expands internship access beyond urban/elite institutions.
• Supports low-income households via financial assistance.
• Builds a workforce aligned with industry needs and economic growth.

Key Concerns with PMIS

1. Severe Underutilisation of Funds

• As of Nov 2025, only ~4% of FY26 budget spent, despite allocation of ₹11,500+ crore (94% for PMIS).
• Indicates an execution gap and low programme demand.

2. Low Acceptance Rates

• Less than one-third of offers accepted.
• Reflects mismatch in location preference, job roles, or inadequate incentives.

3. Poor Programme Completion

• Very few internships completed.
• Concerns: retention, mentorship quality, institutional support.

4. Inadequate Financial Incentives

• ₹5,000 stipend insufficient for living costs in most cities.
• Reduces attractiveness vis-à-vis private or apprenticeship programmes.

5. Credibility Gap

• Ambitious 1 crore target vs. weak initial outcomes risks undermining public confidence.

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Major Skill Development Initiatives in India

1. Skill India Mission

• Umbrella mission for skilling, reskilling, upskilling.
• Over 6 crore individuals trained.
• Aligned with NSQF, integrated with DigiLocker and National Credit Framework.

2. PM Kaushal Vikas Yojana (PMKVY)

• Launched 2015; free short-term training.
• 1.63 crore candidates trained (as of July 2025).

3. Jan Shikshan Sansthan (JSS)

• Community-based skill programme for non-literates and dropouts.
• 26 lakh trained between FY19–FY24.

4. PM National Apprenticeship Promotion Scheme (PM-NAPS)

• Provides 25% stipend support.
• 43.47 lakh apprentices engaged (as of May 2025).

5. Rural Self Employment and Training Institutes (RSETIs)

• Bank-led centres promoting self-employment in rural areas.
• 5.67 million trained (as of June 2025).

6. DDU-GKY

• Placement-linked skilling for rural poor under NRLM.

7. PM Vishwakarma Yojana

• Supports traditional artisans in 18 trades with training, toolkits, and loans.

8. Skill India Digital Hub (SIDH)

• Aadhaar-based digital platform for real-time monitoring and tracking skilling pathways.

9. Centres of Excellence at NSTIs

• Focus on future skills like AI, robotics, green tech (Hyderabad & Chennai, 2025).

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Measures to Strengthen PMIS

1. Recalibrate Stipend Based on Living Costs

• Region-linked stipends (as in Germany’s dual system).
• Ensures affordability and improves acceptance/completion rates.

2. Mandate Learning Outcomes & Certification

• Predefined skill outcomes aligned with NSQF.
• Nationally recognised certificates enhance employability.

3. Strengthen Industry Accountability

• Require companies to report completion, skill acquisition, placement outcomes.
• Integrate with CSR disclosure norms.

4. Improve Candidate–Company Matching

• Use skill mapping, location preferences, and sector alignment.
• Leverage SIDH-like digital tools for accurate matching.
• Incentivise companies for high completion and hiring rates.

5. Decentralise Outreach

• Use ITIs, polytechnics, district employment offices for awareness and mobilisation.
• Successful model already seen under PMKVY and RSETIs.

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Conclusion

The PMIS is ambitious and well-intentioned but suffers from design flaws and weak execution, evident in low fund utilisation, poor uptake, and minimal completion rates. Addressing stipend inadequacy, improving internship quality, and strengthening industry accountability are essential to convert the scheme’s massive scale into meaningful employability gains.

Practice Questions

1. The Prime Minister’s Internship Scheme (PMIS) is implemented by which of the following ministries?

A. Ministry of Skill Development and Entrepreneurship
B. Ministry of Labour and Employment
C. Ministry of Corporate Affairs
D. Ministry of Education

2. Which among the following candidates are NOT eligible for PMIS?

1. IIT and IIM graduates
2. Candidates trained under NATS/NAPS
3. Individuals whose family income exceeds ₹8 lakh
4. Youth pursuing online or distance education

Select the correct answer:
A. 1, 2 and 3 only
B. 2, 3 and 4 only
C. 1 and 4 only
D. 1, 2, 3 and 4

PYQ

With reference to Pradhan Mantri Kaushal Vikas Yojana, consider the following statements: (2018)

1. It is the flagship scheme of the Ministry of Labour and Employment.   
2. It, among other things, will also impart training in soft skills, entrepreneurship, and financial and digital literacy.   
3. It aims to align the competencies of the unregulated workforce of the country to the National Skill Qualification Framework.   

Which of the statements given above is/are correct? 

(a) 1 and 3 only 

(b) 2 only 

(c) 2 and 3 only 

(d) 1, 2 and 3   

Ans: (c)