The Standing Committee on Finance, chaired by BJP MP Bhartruhari Mahtab, has called on the Ministry of Corporate Affairs (MCA) to encourage all States to establish dedicated agencies for the effective implementation and monitoring of the Prime Minister Internship Scheme (PMIS).
The committee, in its latest report on MCA demands for grants for 2025-26, tabled in the Lok Sabha on Wednesday, acknowledged the Ministry’s efforts in driving the scheme forward but urged swift and decisive action to address key challenges faced during its pilot phase.
The PMIS, an ambitious initiative aimed at providing one crore internships over five years with an estimated financial outlay of ₹63,000 crore, seeks to empower youth and bridge the country’s skills gap. The scheme envisions large-scale participation from both private and public sector entities to create employment-ready professionals.
The committee praised the initiative but pointed out several challenges in its execution. A major issue identified was the mismatch between the number of internships offered and actual participation. During the first round of the pilot phase, launched on October 3, 2024, more than 1.27 lakh internships were made available, surpassing the 1.25 lakh target. However, only 8,725 candidates have joined out of the 28,000 who accepted offers, signaling a significant drop-off. Similarly, in the second round, which commenced on January 9, 2025, 1.15 lakh internship opportunities had been posted by partner companies as of February 14, 2025, but participation remains less optimal. Finance Minister Nirmala Sitharaman had recently urged Corporate India to step up participation in the scheme.
Another concern highlighted by the Panel was the longer duration of internships, which may deter candidates from committing. Additionally, the under-utilisation of allocated funds was noted. In FY 2024-25, the Budget estimate (BE) for PMIS was ₹2,000 crore, but the revised estimate (RE) was cut to ₹380 crore, with actual expenditure standing at just ₹21.10 crore as of mid-February 2025. However, the committee acknowledged that funding for FY 2025-26 has been significantly increased to ₹10,831.07 crore, reflecting the government’s commitment to scaling up the program.
A gender imbalance in internship participation was another pressing issue. The committee noted that 72 per cent of the selected interns were male, while only 28 per cent were female, indicating a need for targeted outreach to improve gender diversity. Furthermore, the lack of alignment between candidates’ interests and the roles offered was cited as a factor affecting participation and satisfaction levels.
To tackle these challenges, the committee recommended a mass outreach program to raise awareness about the benefits of PMIS and encourage greater participation. It also stressed the need for better coordination between industry partners and candidates to ensure internships align with individual career aspirations.
A crucial suggestion made by the committee was for the MCA to urge all States to establish dedicated agencies for implementing and monitoring PMIS at the regional level. It argued that a structured, localised approach, would enhance efficiency, facilitate better tracking of progress, and create a skilled, employable workforce across the country.