Youth skilling boost: Govt, India Inc to launch internship scheme on Oct 3

With an overall outlay of Rs 2 trillion, this scheme aims to enhance the employability of young people, particularly those with limited access to higher education or specialised training

In a major initiative aimed at boosting youth employability and skill development, the government, in collaboration with India Inc, will roll out a much-anticipated one-year internship scheme for youth aged 21-24 years on October 3. The programme, which is part of the Prime Minister’s Package for Employment and Skilling, was first announced in the Union Budget and is set to offer opportunities in the country’s top 500 companies, reported The Indian Express.

The internship portal, through which candidates can apply directly, will be launched on the same day. Initially, companies will upload available internship positions, and by October 12, candidates will be able to apply, according to official sources.

Eligibility criteria and conditions

The scheme comes with specific eligibility criteria. Candidates must be aged between 21 and 24 and should not be engaged in full-time employment. Those from families with members employed in government jobs are excluded from participating. Additionally, candidates who have studied at prestigious institutions such as the Indian Institutes of Technology (IITs), Indian Institutes of Management (IIMs), Indian Institutes of Science Education and Research (IISER), or possess qualifications like Chartered Accountant (CA) or Cost and Management Accountant (CMA) will also not be eligible.

However, the scheme will be open to youth trained at Industrial Training Institutes (ITIs) and Kaushal Kendras (skill centres), ensuring it reaches individuals with fewer opportunities in the traditional job market.

Transparent selection process

The selection of interns will be handled through a backend automated process to eliminate bias. Companies will review the automatically selected candidates, and if not satisfied, the process will restart. A panel of government officials and industry representatives will oversee the process to ensure compliance and fairness.

“There won’t be any bias in the selection process. If a company is not fine with the automatically selected candidate, the process will begin again. A panel of government and industry representatives will address any issues,” a source familiar with the matter told The Indian Express.

A major boost for youth employment

This internship scheme is part of a broader initiative to provide skill training to over one crore youth in India over the next five years. With an overall outlay of Rs 2 trillion, it aims to enhance the employability of young people, particularly those with limited access to higher education or specialised training.

The government will provide Rs 4,500 per month via Direct Benefit Transfer (DBT) to the interns, while companies will contribute an additional Rs 500 from their corporate social responsibility (CSR) funds. The companies eligible to participate in this programme have been selected based on their average CSR spend over the past three years.

Interns will be required to spend at least six months in a real-world working environment, ensuring they gain hands-on experience rather than merely classroom-based training. Companies will also have the flexibility to collaborate with their supply chain partners or other institutions to offer a more comprehensive internship experience.

Phased implementation

The scheme will be rolled out in two phases. Phase 1, targeting the skilling of 3 million youth, will span two years, while Phase 2 aims to provide training to an additional 7 million youth over three years. The government is committed to supporting interns by providing an annual grant of Rs 6,000 to cover incidentals and other miscellaneous expenses.

Although the stipend provided by the government and companies under the scheme is fixed at Rs 5,000 per month, companies can opt to pay more if they wish. Any amount above the Rs 500 CSR contribution will be borne entirely by the company and will not be included in their CSR expenditure.

Industry benefits and support

The Confederation of Indian Industry (CII), which has partnered with the Ministry of Corporate Affairs (MCA) to implement the programme, praised the initiative, noting that it will create a skilled workforce pipeline for Indian industry. Chandrajit Banerjee, director general of CII, emphasised the importance of the scheme in addressing the talent shortage in the country.

“With industries grappling with a growing talent shortage, the PM Internship Scheme provides a crucial bridge. By offering on-the-job training to youth, it will prepare them to meet evolving industry demands, while ensuring that businesses get access to a skilled and agile future workforce, fostering progress and innovation,” Banerjee said.