PM Internship scheme falters as funds go unused
Government officials believe the meagre financial assistance may be a deterrent
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VIJAYA BHASKAR CH
The poor performance of the Prime Minister’s Internship Scheme (PMIS) is now clearly reflected in government spending data. The Ministry of Corporate Affairs spent just around 4 per cent of its budget allocation during April-November of FY26, highlighting the scheme’s limited traction on the ground.
Data from the Controller General of Accounts (CGA) show that against a budget allocation of over ₹11,500 crore, the ministry spent only a little over ₹500 crore in the first eight months of the financial year. Nearly 94 per cent of the allocation, more than ₹10,800 crore, was earmarked for PMIS, indicating that weak utilisation is directly linked to the scheme’s performance.
This pattern is not new. In FY25, the Ministry’s allocation was sharply revised down to around ₹1,078 crore from ₹2,667 crore, after large sums went unspent. The Ministry had told the Parliamentary Standing Committee that funds were surrendered mainly due to poor utilisation under the internship scheme. Actual expenditure that year was only around ₹680 crore.
Soft demand
Official data also point to limited interest among candidates. In a written reply to Parliament on December 15, 2025, Finance Minister Nirmala Sitharaman said that in the first round of the PMIS pilot, 6.21 lakh applications were received against 1.27 lakh internship opportunities. While companies made over 82,000 offers, only about 28,000 were accepted, an acceptance rate of just 34 per cent. As of November 30, 2025, only 2,066 interns had completed their internships.
The second round showed a similar trend. More than 83,000 offers were made against 1.18 lakh opportunities, but fewer than 24,600 were accepted, pushing the acceptance rate below 30 per cent.
While no official explanation has been offered, government officials believe the meagre financial assistance may be a deterrent. Interns receive ₹5,000 a month for 12 months, along with a one-time grant of ₹6,000 and insurance coverage.
Announced in the 2024-25 Budget, PMIS aims to provide one crore internships in five years. So far, however, spending and participation data suggest the scheme is struggling to take off even in its pilot phase.
Published on January 14, 2026
