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Govt Considers Stipend Hike for PM Internship Scheme Amid Low Response

Written by: Team Angel OneUpdated on: 3 Jul 2025, 6:27 pm IST
The government is exploring an increase in stipends for the Prime Minister’s Internship Scheme (PMIS) following weak participation, with only 11,000 applicants for 2 rounds.
Govt Considers Stipend Hike for PM Internship Scheme Amid Low Response
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The Prime Minister’s Internship Scheme (PMIS), aimed at bridging the gap between academia and industry, has not garnered the expected level of participation, leading the government to consider increasing stipends to attract more candidates. 

Despite significant efforts to promote the scheme, the response has been lacklustre, prompting officials to rethink financial incentives and make the programme more appealing.

Weak Response in Initial Rounds of PM Internship Scheme

The PMIS was launched with a vision to provide young graduates with real-world industry experience. However, in its first 2 rounds, the scheme has seen only about 5,000 participants in the second round and 6,000 in the first. 

This participation is far below the government’s target of 1.25 lakh internships for FY25. Despite the initial lack of success, the government remains committed to improving the scheme to better align it with the needs of young job seekers.

Government’s Plan to Increase Stipend for PM Internship

At present, each intern in the PMIS receives a ₹5,000 stipend per month, with ₹500 coming from the company’s Corporate Social Responsibility (CSR) funds and ₹4,500 provided through Direct Benefit Transfer (DBT) by the government. Furthermore, there is a one-time joining grant of ₹6,000 for each intern. To boost the scheme's attractiveness, the government is now considering a stipend hike, as per a CNBC-TV18 report.

This adjustment aims to make the internship more appealing without putting excessive pressure on public finances. Sources suggest that the increased stipend could be funded entirely by corporate CSR budgets, offering a win-win for both the government and the private sector.

Proposed Graded Stipend Structure

In an attempt to attract more skilled candidates, the government is exploring a graded stipend system, where more qualified individuals will receive higher payouts. This merit-based model could encourage top talent to participate in the scheme. While these changes are yet to be finalised, the intent is clear to create a system that rewards merit while improving the overall success of the PMIS programme.

Other Modifications to PMIS to Improve Transparency

Earlier adjustments to the PMIS included better transparency through the listing of internship locations and available facilities on the official portal. These changes were made to address concerns raised by potential interns, such as uncertainty about accommodation and food facilities. The government hopes that these efforts, combined with the stipend hike, will lead to improved participation in future rounds of the scheme.

Read More: Government Plans to Ease SEZ Rules to Attract New-Age Sectors

Conclusion

The government’s ongoing efforts to enhance the Prime Minister’s Internship Scheme underscore its commitment to addressing youth unemployment and providing valuable industry experience. While participation has been below expectations, the proposed stipend hike and other adjustments show promise in making the programme more attractive. 

These efforts reflect the government’s proactive approach to engaging the nation’s young workforce.

Disclaimer: This blog has been written exclusively for educational purposes. The securities or companies mentioned are only examples and not recommendations. This does not constitute a personal recommendation or investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in securities are subject to market risks. Read all related documents carefully before investing.

Published on: Jul 3, 2025, 12:57 PM IST

Team Angel One

Team Angel One is a group of experienced financial writers that deliver insightful articles on the stock market, IPO, economy, personal finance, commodities and related categories.

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