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Budget 2026: PM Internship Scheme outlay down over 50% from BE FY26

The PM Internship Scheme had been allocated ₹10,831 crore in the Budget Estimates for 2025-26, but this was later slashed by about 95 per cent to ₹526 crore in the Revised Estimates

The Ministry of Corporate Affairs (MCA) is likely to open the internship scheme for applicants in mid-October, according to people in the know. The first round of shortlisting of candidates will be conducted using artificial intelligence (AI), they s

The Centre has not formally explained the steep reduction in the Revised Estimates for FY26. However, data from the pilot rounds of the scheme point to low acceptance rates among candidates. Illustration: Ajay Mohanty

Rahul Goreja New Delhi

2 min read Last Updated : Feb 01 2026 | 5:59 PM IST

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Allocations for the Prime Minister Internship Scheme (PMIS) have been cut by more than half to ₹4,788 crore in the Union Budget 2026–27, reflecting a sharp reset after weak uptake during the pilot phase.

The scheme had been allocated ₹10,831 crore in the Budget Estimates (BE) for 2025–26. However, this was later reduced by about 95 per cent to ₹526 crore in the Revised Estimates (RE) for the year.

As a result, while the FY27 BE represents a cut of over 50 per cent from the original FY26 allocation, it marks an increase of more than 800 per cent when compared with the sharply pared-down RE for FY26.

What is the PM Internship Scheme?

The PMIS was introduced in the full Budget for 2024–25 with the aim of offering internships to 10 million young people in the country’s top 500 companies over a five-year period.

The Ministry of Corporate Affairs (MCA) launched a pilot of the scheme in October 2024, targeting 1.25 lakh internship opportunities within the first year.

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Why was the allocation sharply reduced?

The Centre has not formally explained the steep reduction in the Revised Estimates for FY26. However, data from the pilot rounds of the scheme point to low acceptance rates among candidates.

In the first round of the pilot, around 1,81,000 candidates applied for 1,27,508 internship positions listed by participating companies. Of these, 82,077 offers were extended, but only 28,141 candidates accepted them.

A similar trend was seen in the second round launched in 2025. While 1,18,948 internships were posted and 83,696 offers were made, only 24,638 candidates — about 29 per cent — accepted the offers.

After the first round, the ministry cited the long duration of internships and a mismatch between candidates’ interests and the roles offered as key reasons for the low acceptance rate.

According to a Business Standard report, the third round of the internship programme is expected to be launched soon with changes such as a shorter duration, aimed at improving participation.