Low Acceptance Rate in the Second Round of PM Internship Scheme Raises Concerns

The second round of the Prime Minister Internship Scheme (PMIS) pilot programme has seen only 30% of internship offers accepted by candidates, according to Finance Minister Nirmala Sitharaman’s written reply in the Lok Sabha on Monday, August 18. This is lower than the 34% acceptance rate recorded in the first round of the pilot.

As per the data, 82,110 internship opportunities were posted by companies in the second round (which began on January 9, 2025), out of which only 24,131 offers were accepted by candidates by August 12, 2025. In comparison, 82,077 offers were made in the first round (starting October 3, 2024), and 28,141 were accepted.

Why Are PM Internship Scheme Offers Being Rejected?

The government shared that many candidates did not accept or join internships due to several reasons. These include:

• Location of internships
• Duration of the programme
• Pursuing higher education

This feedback was collected from various sources, such as students, industry bodies, and state governments.

State-Wise Participation in PM Internship Scheme

Among all states, Andhra Pradesh received the highest number of applications (75,206). However, out of 10,899 offers made, only 2,809 were accepted. In Ladakh, 9,055 offers were made, with 2,283 accepted. Nagaland followed with 7,025 offers and 1,765 acceptances.

Suggestions for Improvement

A recent report by the Standing Committee on Finance pointed out key areas that need improvement for the PMIS to succeed. It recommended:

• Regular independent evaluations for transparency
• Relaxed eligibility norms for students from marginalised and poor backgrounds
• Financial support for living expenses, especially for those from remote areas
• Greater involvement of SMEs, startups, and local players

The Committee warned that without financial support, students from underserved areas may not be able to afford to take up internships. This would limit the inclusivity and diversity of the programme.

What Was the Budget Allocation for the PM Internship Scheme?

The PMIS was allocated ₹2,000 crore in the Budget Estimates for FY 2024-25. However, this was reduced to ₹380 crore in the Revised Estimates.

The full-scale launch of the PMIS will depend on the feedback and results from this pilot project. Meanwhile, candidates are encouraged to gain work experience through such internships, just as they would be advised to open a demat account to begin learning about financial markets.

Read more: What is the Stipend Offered in the PM Internship Scheme?

Conclusion

The PMIS aims to provide valuable experience to students across India; however, the low acceptance rate suggests there are challenges to be addressed. To enhance the effectiveness of the scheme, factors such as accessibility, support, and inclusiveness may need further attention before expanding it more widely.

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.