The Prime Minister Internship Scheme (PMIS) Pilot 2: Driving India’s Employability Forward

India holds the potential to benefit from its demographic dividend, marked by a large youth population. However, the persistent gap between academic learning and industry-ready skills is a source of concern as it is putting into question the overall employability of this demographic. To address this skill gap, the Government of India launched the Prime Minister’s Internship Scheme (PMIS) on October 3, 2024. The scheme offers a 12-month paid internship across the top 500 companies in the country. The scheme thus seeks to provide real-time industry exposure through structured internship programs. This initiative presents a valuable opportunity for students and job seekers—particularly the youth—to gain practical work experience and enhance their employability. 

With the inception of the scheme nine months ago, the pilot program is on the verge of  completion and round 2 is scheduled to launch on August 1, 2025. The second pilot of the scheme introduces several new features designed to tackle the shortcomings identified during the first pilot. In this article, we assess the progress and impact of the first pilot, explore the key challenges encountered, and discuss the way forward.

The First PMIS Pilot: Achievements and Challenges

Launched on October 3, 2024, the initial round of the first PMIS pilot made over 1.27 lakh internships available—exceeding the original target of 1.25 lakh. Despite this achievement, the program’s overall impact and reach were limited due to several inefficiencies.

Of the 28,000 candidates who accepted internship offers, only 8,725 actually joined, indicating a significant dropout rate. A similar pattern emerged in the second round of the pilot, which commenced on January 9, 2025. By February 14, 2025, approximately 1.15 lakh internship opportunities had been posted by partner companies, yet candidate participation remained low.

Several factors contributed to this outcome:

• The 12-month duration was considered too long by many students, who preferred shorter-term internships.

• There was significant underutilization of allocated funds. For FY 2024–25, the Budget Estimate (BE) for PMIS was ₹2,000 crore, which was later revised (RE) to ₹380 crore. However, actual expenditure stood at only ₹21.10 crore as of mid-February 2025.

• Gender imbalance was another concern, with 72% of selected interns being male and only 28% female.

• Additional challenges included limited awareness in remote areas, poor coordination between companies and candidates, and a mismatch between job roles and candidate expectations.

The PMIS Round 2 (Aug 1st 2025) – A Remedial Push Toward Sustainable Employability

The second pilot project scheduled to launch on August 1, 2025, introduces several enhancements to address the issues observed in the first phase. It targets the provision of 7 lakh internships in FY 2025–26—a six-fold increase over the previous year’s target of 1.25 lakh. Over 300 companies have already expressed interest, and nearly 90,000 internship offers have been made to date.

To support this ambitious scale, the government has retained the monthly stipend of ₹5,000, with additional contributions expected from companies through their Corporate Social Responsibility (CSR) budgets. A one-time relocation allowance of ₹6,000 will also be provided, along with meals and accommodation support where applicable.

Several technological upgrades have been introduced to enhance the scheme’s implementation:

• The program’s digital portal now includes geotagging features to help candidates locate nearby opportunities.

• Instant updates are provided to improve responsiveness and engagement.

• Discussions are underway to integrate PMIS with the Employment-Linked Incentive (ELI) Scheme to accelerate job creation and broaden the scheme’s scope.

The Prime Minister’s Internship Scheme (PMIS) represents a forward-looking initiative to bridge the existing gap between education and employability through structured internship programs for the youth. While the first pilot phase faced several implementation challenges, the upcoming second pilot has introduced strategic enhancements to address these gaps and expand outreach. 

With a significant increase in internship opportunities and improved infrastructure for delivery, PMIS has the potential to become a cornerstone of India’s skilling ecosystem. Students and job seekers, especially freshers, are encouraged to stay updated about the latest internship opportunities by regularly visiting the PMIS portal.

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