PM internship scheme sees 7,292 exits; stipend raised to ₹9,000 a month

Thousands of candidates are dropping out midway through the government’s flagship internship initiative, even as public spending on the programme remains a fraction of the allocation.

 

Dropouts under PM Internship Scheme

 

Over 7,290 candidates have left internships without completing them under the Prime Minister Internship Scheme (PMIS), the corporate affairs ministry informed Parliament.

 

The scheme, currently running as a pilot in two phases, has seen significant participation on paper but relatively low completion levels.

 

In the first round (launched October 2024):

 

621,000 applications were received

 

8,760 candidates joined internships

 

3,605 have completed them so far

 

In the second round (launched January 2025):

 

455000 applications were received

 

Over 7300 candidates joined internships

 

As of March 9, 2026, a total of 7292 candidates exited before completion, the ministry said.

 

What the scheme offers

Minister of State for Corporate Affairs Harsh Malhotra clarified that PMIS is not designed to guarantee jobs. Instead, the scheme focuses on: 

• Building industry-relevant skills
• Improving employability
• Providing exposure to corporate work environments

 

The internships are structured over 12 months, with completion timelines varying depending on joining dates. For the first round, completion runs between November 2025 and March 2026.

 

Financial allocation vs actual spending

Despite a substantial allocation, actual spending remains low.

 

Budget allocation (FY26): ₹10,831.07 crore

 

Estimated expenditure: ₹87.46 crore

 

The minister noted that the full-scale rollout has not yet begun, and the pilot phase continues.

 

Higher stipend from March 2026

In a move aimed at improving participation and retention, the government has increased monthly financial assistance:

 

Earlier stipend: ₹5,000

 

Revised stipend: ₹9,000 (effective March 2026)

 

What this means for candidates

The data points to a key concern: while interest in the scheme is high, conversion into completed internships remains limited. For young applicants, this underscores two practical realities:

 

Internships under PMIS are skill-building opportunities, not job guarantees

 

Completion is critical to extract value, especially as the scheme is positioned as a pathway to becoming “job-ready”

 

With higher stipends now in place, the government may be attempting to address dropout rates. Whether that improves completion outcomes will become clearer as the pilot progresses.

 

(With inputs from PTI)