The PM Internship Scheme (PMIS), the Modi government’s ambitious initiative to address the growing unemployment rate among India’s youth, has seen a major cut in allocation by 55% to ₹4,788 crore in Budget 2026–27, from ₹10,831 crore in Budget 2025–26. Notably, the Revised Estimates show that the government spent only ₹526 crore, or 4.8% of the original allocation, in FY26.

Launched two years ago following the Budget 2024–25, it was widely welcomed across sections, with the government setting a target of providing 10 million internships over five years in partnership with more than 500 companies. Two pilot programmes, rolled out in 2024 and later in 2025, were conducted to test the model ahead of full-scale implementation, with a special focus on youth from Tier-II and Tier-III cities.

However, data presented to Parliament in 2025 by the Ministry of Corporate Affairs shows weak uptake under the PM Internship Scheme, with only one in five candidates accepting internship offers and nearly 20% dropping out at an early stage.

According to the government, companies made about 1.65 lakh internship offers across two phases, but only 20% of these were taken up.

Low acceptance among students 

In the first round of the pilot project, companies listed more than 1.27 lakh internship opportunities on the scheme portal, receiving 6.21 lakh applications. They made 82,000 offers, but only 8,700 (about 10.6%) accepted the offer.

In the second round, starting January 2025, companies posted over 1.18 lakh opportunities and got more than 4.55 lakh applications. By November 26, 2025, the companies had extended more than 83,000 offers, of which approximately 24,600, or nearly 30%, were accepted.

Last year, The Ministry of Corporate Affairs told the Lok Sabha that location mattered a lot to candidates, who preferred internships within 5 to 10 km from them. They also said the 12-month internship is longer than usual skilling programs, and some candidates were not interested in the roles offered.

Why do candidates reject internship offers?

Last year, the Ministry of Corporate Affairs told the Lok Sabha that location was a major factor for candidates, who generally preferred internships within 5 to 10 km of their residence. The ministry also noted that the 12-month duration of the internship is longer than typical skilling programmes, and some candidates were not keen on the roles offered.

Reports further suggest that the relatively low stipend of ₹5,000 per month, along with a joining bonus of ₹6,000 intended to cover initial expenses, contributed to the low acceptance rate among students.