New Delhi: The government aims to broaden the reach of the PM internship scheme for FY26 by substantially enhancing the budget allocation for the ministry of corporate affairs, which oversees the program designed to improve the skills and employability of the nation’s youth.
For this initiative, the government has set aside ₹10,831 crore for FY26, a staggering increase of more than 27 times the funding allocated for the current fiscal year, according to budget documents. This suggests that the government intends to support 1.8 million interns in the coming year.
The initiative involves an annual investment of ₹60,000 for each participant in the internship program. To achieve its five-year goal of providing 10 million internships in the top 500 companies, the government must create internship opportunities for approximately two million candidates each year. The amount earmarked for the next fiscal year aligns closely with this annual target.
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During the initial phase of the scheme launched last October, there were 127,000 internship openings available. Companies provided over 82,000 positions to more than 60,800 candidates, of which over 28,000 candidates accepted their offers, as reported by minister of state for corporate affairs Harsh Malhotra to the Lok Sabha on February 3. For these accepted offers, a total of ₹4.38 crore has been distributed as a one-time grant to 7,304 candidates who have so far participated.
Expert Opinions
Experts emphasize that new initiatives often require time to reach all eligible beneficiaries, and awareness campaigns can be instrumental in increasing the uptake of such programs.
The enhanced budget allocation for the upcoming fiscal period corresponds with the broader objective of improving and fortifying youth employability, stated Sumit Kumar, chief strategy officer at TeamLease Degree Apprenticeship.
“Nevertheless, to create more opportunities, there must be proactive participation from employers, who should step up to provide internships under the scheme. Furthermore, from a policy standpoint, internships that are integral to undergraduate curricula should also be incorporated within the program to ensure wider inclusion and effectiveness,” Kumar added.
The internship scheme is designed to enhance youth employability, as possessing the right skill set pertinent to industry demands has become essential, especially in a landscape reshaped by technology, environmental factors, and the growing capital-to-labor ratio.
Generating employment remains a central focus for the government, given that over two-thirds of India’s population (68%) falls within the working age group of 15-64 years, according to available UN data.
In this scheme, the government provides a one-time support of ₹6,000, along with a monthly stipend of ₹4,500 to interns, while companies cover training expenses and contribute a monthly payment of ₹500 from their corporate social responsibility budgets.
