The evolutionary pivot of India’s internship ambitions

Thepromise of a demographic dividend has long been the cornerstone of India’s economic narrative, yet the bridge between educational attainment and workplace readiness has often remained a rickety structure of missed opportunities.

In an ambitious attempt to fortify this connection, the Union Government has launched the Prime Minister’s Internship Scheme (PMIS) in late 2024, aiming to place one crore youth in the nation’s top 500 companies over five years. As we move through early 2026, the scheme stands at a critical crossroads, revealing both the immense appetite for skill-building among the youth and the structural hurdles that prevent a seamless transition into the workforce.

The initial rollout of the scheme was met with a surge of enthusiasm that tested the digital infrastructure of the Ministry of Corporate Affairs. In the pilot project’s first two rounds, corporate India posted over 2.45 lakh internship opportunities, drawing nearly 11 lakh applications. However, the conversion of interest into active participation has been a sobering narrative.

Data presented to Parliament in late 2025 indicated that while 1.65 lakh offers were made, only about 33,300 were accepted, which translates to a mere 20 per cent acceptance rate. Even more concerning was the 20 per cent dropout rate among those who did join. The financial backing remains robust, with the government allocating ₹4,788 crore in the Union Budget 2026-27, yet the actual utilisation of funds has lagged, reflecting a mismatch between the supply of offers and the reality of the candidates' lives.

On the surface, the PMIS offers a compelling package: a monthly stipend of ₹5,000, a one-time incidental grant of ₹6,000, and insurance coverage. For a graduate from a Tier-II or Tier-III city, the prospect of having a ‘Top 500’ company on their resume is a significant draw. It provides a rare window into corporate governance and real-world industrial processes. However, the ‘con’ side of the ledger is dominated by logistical and financial friction. A ₹5,000 stipend is often insufficient to cover the cost of living in metropolitan hubs where these top companies are headquartered. Furthermore, candidates have cited the 12-month duration as excessively long compared to standard skilling programs, particularly when the roles offered, often in basic administration or sales do not align with their long-term career aspirations.

Recognising these gaps, the Institute of Chartered Accountants of India (ICAI) has stepped forward with a proposal that could fundamentally redefine the scheme’s reach. The ICAI has urged the Ministry of Corporate Affairs to allow CA firms to participate in PMIS by relaxing the Corporate Social Responsibility (CSR) eligibility criteria. Currently, the scheme is restricted to companies with significant CSR spending, a bracket that excludes professional partnership firms. The ICAI’s proposal is revolutionary: they suggest a nine-month internship period with a higher stipend of ₹9,000, entirely funded by the firms themselves.

By leveraging their vast network of over 1,00,000 registered firms, ICAI intends to create a cadre of ‘Corporate Mitras’, professionals trained to assist Small and Medium Enterprises (SMEs) with bookkeeping, compliance and financial health.

The probable future effect of the ICAI’s involvement is two-fold. For the internees, it offers a localised solution to the ‘location mismatch’ problem.

Unlike the top 500 corporates centred in cities like Mumbai or Bengaluru, CA firms are existing in almost every Indian district. This allows youth to gain high-value professional training without the prohibitive cost of relocation. For the medium and small industries, the influx of ‘Corporate Mitras’ could be a game changer. These industries often struggle with the complexity of GST compliance, digital record-keeping and formal credit acquisition. Having a trained workforce dedicated to these tasks at an affordable cost would enhance the Ease of Doing Business at the grassroots level, effectively formalising a larger slice of the Indian economy.

For the PM Internship Scheme to evolve from a pilot experiment into a national success story, it must move toward a more decentralized and flexible architecture. The government’s recent decision to review age limits and internship durations is a step in the right direction. However, the true potential of the scheme lies in its ability to adapt to the diverse needs of different sectors. Integrating professional bodies like the ICAI, ICSI and ICMAI will shift the focus from ‘generic exposure’ to ‘specialized employability.’

The status of the internship program in India is currently one of ‘cautious recalibration.’ We have moved past the initial euphoria of the launch into a phase of hard-earned data and necessary pivots. By addressing the stipend-location paradox and empowering professional firms to take the lead, the government can ensure that the one crore internship target is not just a statistical goal but a lived reality for the millions of youth seeking a foothold in the modern economy.

The journey from being an intern to becoming a ‘Mitra’ of the industry is precisely the transition India needs to secure its economic future.

(The writer is a former college principal and founder of the NGO Supporting Shoulders)