Our youth are the driving force of India’s future, brimming with immense potential and ambition. With over 50% of India’s population under the age of 25, the country boasts the highest youth population in the world. However, the critical challenge remains in bridging the chasm between education and employability. With approximately 12 million new entrants joining the workforce each year, it is crucial to equip students with practical, industry-relevant skills that will prepare them for an evolving job market. Alarmingly, 48.75% of youth still face significant employability barriers. While apprenticeships have made strides in addressing this issue, the PM Internship Scheme soon set to be launched, represents a vital addition to the amalgamation of efforts aimed at propelling growth forward and bridging the gap, offering crucial hands-on experience and industry exposure for young professionals.
What is the Prime Minister (PM) Internship Scheme?
The PM Internship Scheme, introduced as part of the Employment Linked Incentive (ELI) scheme, was announced by Hon’ble Finance Minister Ms Nirmala Sitharaman during the 2024-2025 Union Budget. The first phase of the scheme officially came into effect on October 3, 2024. As a bold initiative, the scheme aims to enhance skilling and employability among the youth by providing industry-relevant, practical training through internships directly linked to job opportunities. In its pilot phase, the scheme is set to reach 1.25 lakh youth by the end of 2024-2025, with an ambitious goal to impact 1 crore young individuals across India over the next five years. This initiative not only seeks to bridge the gap between academic learning and real-world industry needs but also aligns with India’s broader mission of preparing its workforce for the challenges of a rapidly evolving job market.
Launched by the Ministry of Corporate Affairs, the PM Internship Scheme is designed to provide internship opportunities in the top 500 companies across diverse sectors for a period of one year (12 months). By exposing young individuals to the inner workings of leading industries, the scheme enables them to gain valuable experience, industry-relevant skills, and practical knowledge that will make them more competitive in the job market. The program emphasizes a “learning while earning” and “learning by doing” model, empowering participants to develop workplace competencies in real-time environments. To support interns financially, the scheme offers a monthly stipend of ₹5,000 and a one-time allowance of ₹6,000, ensuring that a wider range of youth can participate in this valuable opportunity. Over the next five years, the PM Internship Scheme will offer 10 million internships, helping to cultivate a generation of skilled professionals equipped to succeed in their chosen careers. By providing this critical experience, the scheme not only boosts employability but also fosters professional networks and lays the foundation for sustainable, long-term career growth for India’s youth.
How will the PM Internship Scheme Foster Skilling?
Skilling is the clarion call for shaping the future of India’s youth, as India’s education system has traditionally emphasized theoretical learning over practical skill-building, resulting in persistent skill gaps and limited employment opportunities despite rising workforce demands. A recent National Skill Development Council study projects a requirement for 103 million skilled workers, while the available supply stands at 74 million, highlighting the urgent need for targeted interventions, particularly for youth from Tier II and Tier III colleges and institutes who often lack exposure and practical opportunities. The PM Internship Scheme addresses these gaps by providing structured, real-time experiences coupled with financial support. By focusing on candidates aged 21-24 and excluding graduates from premier institutions such as IITs, IIMs, National Law Universities, IISERs, NIDs, IIITs, and individuals with professional qualifications like CA, CMA, CS, MBBS, BDS, MBA, or advanced degrees, the scheme ensures inclusivity for underrepresented groups, empowering participants to “learn by doing” and “earn while learning.” This initiative recognizes that education extends beyond traditional classroom learning, providing participants with real-world exposure that complements academic knowledge, helping them build critical industry-relevant skills, professional networks, and confidence to thrive in a competitive global economy.
Complementing Skilling Ecosystem: Apprenticeships via NAPS and NATS Programs
Apprenticeship programs have emerged as the linchpin for employment across a wide range of sectors, seamlessly merging classroom instruction with hands-on training to develop a skilled workforce precisely attuned to industry demands. These programs not only enhance the employability of young individuals but also offer them the opportunity to “earn while they learn,” allowing them to gain valuable skills without the financial pressures typically associated with higher education. This approach accelerates the learning process, equipping apprentices with essential technical, cognitive, and interpersonal skills that are directly applicable to their chosen fields. Through apprenticeships, individuals can specialize in high-demand areas such as manufacturing, engineering, information technology, and healthcare, with training that aligns precisely with industry requirements. This direct connection ensures that apprentices are learning exactly what is needed to excel in their professions, making them highly employable upon program completion. Studies consistently reveal that individuals who complete apprenticeships have a higher likelihood of securing full-time employment than those relying solely on academic qualifications. By providing an integrated path from education to employment, apprenticeship programs play a crucial role in reducing the employability challenges faced by young people in India, bridging the gap between education and industry needs to support a job-ready workforce.
Complementing this initiative are the National Apprenticeship Promotion Scheme (NAPS) and the National Apprenticeship Training Scheme (NATS), which collectively strengthen India’s skilling ecosystem. NAPS, inclusive of a broader age demographic and starting as early as the fifth grade, offers partial stipend support of up to ₹1,500 per month via Direct Benefit Transfer (DBT), while NATS, managed by the Ministry of Education, provides structured on-the-job training (OJT) lasting 1-3 years for graduates, diploma holders, and vocational certificate holders, with government reimbursement of up to ₹4,500 per month in the first year. These programs address critical challenges such as low skill levels, high attrition rates, and productivity gaps by equipping individuals with theoretical knowledge and OJT that align with industry demands.
Apprenticeships, as a key intervention blending classroom learning with hands-on OJT, enable industries to quickly onboard skilled manpower, enhancing productivity and fostering a more engaged workforce while reducing attrition rates. Through the integration of financial support and structured practical exposure, these initiatives empower individuals from underserved regions to overcome barriers, enhance employability, and contribute meaningfully to the nation’s economic growth by creating a future-ready workforce that meets the evolving needs of the industry.
The Role of Work-Integrated Learning Programs in Enhancing Employability
Work-integrated learning (WIL) programs, including apprenticeships and internships, bridge the gap between academic education and the practical skills demanded by industry. In today’s competitive job market, academic credentials alone often fall short, as employers increasingly prioritize candidates with real-world experience and industry-relevant capabilities. WIL programs immerse students in professional environments, allowing them to apply theoretical knowledge to real business challenges, thereby developing essential problem-solving skills and gaining a nuanced understanding of industry operations. These programs also refine critical soft skills like collaboration, communication, and project management, which are pivotal to job performance, while fostering adaptability and resilience to navigate complex work environments. Additionally, WIL programs provide invaluable networking opportunities through structured mentorship, exposing students to seasoned professionals and workplace dynamics, which helps them transition smoothly from academia to employment. By cultivating industry-relevant skills, practical know-how, and a realistic understanding of workplace expectations, WIL programs empower students with the confidence and readiness to excel in their careers.
The future of India’s workforce depends on a comprehensive approach to skilling that integrates education with practical experience. By fostering initiatives like the PM Internship Scheme, NAPS, and NATS, and emphasizing the importance of work-integrated learning, India is laying the groundwork for a self-reliant, globally competitive workforce. These programs not only equip the youth with industry-relevant skills but also ensure inclusivity and accessibility, empowering individuals from diverse backgrounds to contribute meaningfully to the nation’s economic progress. Through a collective focus on bridging the skills gap, India can unlock the immense potential of its youth, driving sustainable development and securing a prosperous future for generations to come.
References:
