BS EDIT: India’s internship scheme: Boosting youth employment

By Business StandardPublished On Oct 16, 2024

A promising start for youth

In her July 23 Budget speech, Union Finance Minister Nirmala Sitharaman announced a landmark scheme to create 10 million internships over five years in India’s top 500 companies

Key details of scheme

This initiative aims to provide young people with real-world business experience.

Selected interns will receive a monthly allowance of Rs 5,000, plus a one-time assistance of Rs 6,000

Sectors and eligibility

The pilot phase launched in FY25 covers 24 sectors, from energy to banking. Eligible candidates are diploma holders or graduates, while those with advanced degrees are excluded

Early response, challenges

155,000 youths applied for 91,000 internships on Day 1. Lower turnout possibly due to eligibility, location concerns, and a narrow age range of 21-24 years

Monitoring progress, outcomes

AI will match candidates to roles, with monitoring to assess impact. While post-internship absorption is uncertain, skills gained could benefit smaller firms long-term

Benefits for India’s workforce

This scheme may benefit SMEs by upskilling interns at large firms, helping them transition and contribute to India’s growth. Tracking progress will yield policy insights