Union Minister of Corporate Affairs Nirmala Sitharaman emphasized that the Prime Minister's Internship Scheme (PMIS) addresses a critical skills gap in India's workforce. Speaking to interns at an event on Friday, Sitharaman explained that industry struggles to find candidates with the right skills while graduates and ITI students are unable to find jobs despite applying to several companies. The scheme was specifically designed to provide hands-on workplace experience and industry exposure to address the gap between formal training and employers' expectations. As Sitharaman noted, "Unless this gap is filled, kids will not get jobs and industries will say that there are jobs but not the right people to do them."
The latest data reveals continued challenges in scheme utilization despite recent improvements. According to a Parliament response as of January 27, 3,417 interns in the first round had completed the course, while almost twice that number, or 7,094 candidates, left without completing the course. The FY26 allocation of ₹10,831.07 crore saw only ₹64.91 crore utilized as of December 31, 2025. This performance follows the ₹2,000 crore allocation for FY25 pilot stage where only ₹29.29 crore was spent, as reported by the parliamentary committee. However, Sitharaman highlighted positive outcomes, stating that some interns had received employment opportunities from the companies where they completed their internships, including at Infosys and Mahindra.
The government has revised PMIS guidelines in March 2026 ahead of the third round to improve participation. The changes include allowing six- or nine-month internships instead of the earlier 12-month duration and raising monthly assistance from ₹5,000 to ₹9,000. The eligibility criteria were also widened, including raising the upper age limit from 24 to 25 years and allowing final-year undergraduate and postgraduate students to participate. In the Budget for FY2026-27, the internship scheme saw an allocation of ₹4,800 crore, much lower than the FY2025-26 allocation of over ₹10,000 crore for the main scheme, which remains yet to commence.
A parliamentary panel has called for a comprehensive recalibration of the Prime Minister Internship Scheme (PMIS) following significant underutilization of allocated funds. According to the committee's report tabled in the Lok Sabha on August 10, the scheme showed overestimation of absorptive capacity with only ₹29.29 crore of the ₹2,000 crore allocated for FY25 pilot stage actually spent. The committee noted that alignment of budget projections with realistic uptake capacity and phased roll-out plans has not been adequately addressed. The latest data shows more than 2.45 lakh internship opportunities were posted across two rounds of the pilot phase with over 350 companies participating, though only 16,060 candidates joined the scheme, resulting in a dropout rate of 53.6% in Round I.
The standing committee, chaired by MP Bhartruhari Mahtab, has recommended that the Ministry undertake a comprehensive recalibration based on pilot phase learnings. As reported in the committee's findings, the panel desires that the Ministry furnish a detailed, time-bound action plan incorporating performance indicators prior to full-scale implementation. The committee also asked the MCA to ensure the National Financial Reporting Authority conducts sectoral studies in industries such as oil, energy, and insurance to identify audit quality concerns. With the scheme's focus on bridging skills gaps through practical experience, Sitharaman's vision of providing skills often not covered by formal education or vocational training, such as teamwork, workplace etiquette and behavioural skills, remains central to its continued development and implementation.
