The Prime Minister Internship Scheme has demonstrated a concerning conversion rate across its three-round implementation from October 2024 to August 2026. According to reports from Business Standard, only 20% of candidates who received offers actually joined various companies under the scheme. The conversion rate varied significantly across rounds, with Round 1 achieving 14.4% conversion, Round 2 dropping to 10.3%, and Round 3 surprisingly reaching 56.7%. However, the overall scheme saw 39% of total opportunities result in offers to candidates, indicating substantial demand for internship positions.
The first round, beginning in October 2024, saw 127,508 internship opportunities posted with 621,000 applications received. Companies made 60,866 offers, but only 8,760 candidates joined, resulting in a 57.4% dropout rate. The second round in February 2025 recorded 118,948 opportunities with 455,000 applications, generating 71,192 offers that led to 7,300 joinings with a 36.3% dropout rate. The third round in April 2026 showed 154,366 opportunities with 350,259 applications, producing 25,794 offers and 14,620 joinings - the highest number across all rounds.
The scheme has experienced significant gaps between estimated and actual expenditure across its implementation period. As reported by Business Standard, in FY25, the estimated expenditure was ₹2,000 crore but actual spending reached only 1.5% of the estimate. For FY26, the estimated expenditure rose to ₹10,831 crore while actual spending was 0.9% of the estimate. The scheme's actual allocation between FY24 and FY26 stood at ₹123.8 crore, with approximately 10% spent on publicity and media activities by the Ministry of Information and Broadcasting's Bureau of Communication. The publicity expenditure amounted to ₹12.6 crore, with 60% allocated to print media and 40% to digital media.
Launched in October 2024, the PM Internship Scheme provides internships lasting 6 to 12 months with a monthly stipend of ₹9,000 and a one-time joining grant of ₹6,000. According to Business Standard, the Centre bears 90% of the stipend through direct benefit transfer while the remaining amount is contributed by participating companies. The scheme offers opportunities across sectors including technology, manufacturing, infrastructure, healthcare, retail and agriculture. Professor Bornali Bhandari from the National Council of Applied Economic Research attributed the high dropout rates to reluctance to migrate, wage mismatch, and aspiration mismatch. She noted that interns are often unwilling to relocate for low wages and that offered roles frequently do not align with their career aspirations, leading to program abandonment.
