A learning curve: On the PM Internship Scheme

The outcomes of the PM Internship Scheme’s pilot project need monitoring

On October 3, without much fanfare, the Centre launched an online portal that will serve as the platform for implementing one of the major announcements in the Budget for India’s unemployed, and to a significant extent, unemployable youth. The portal, which operationalises the PM Internship Scheme — part of a five-scheme package designed to spur job creation and impart skills to 4.1 crore youth over five years — will match companies willing to offer year-long on-the-job training stints with young people striving to find a job. In principle, the mainly Centre-funded scheme makes sense for a country with a large, young workforce which is also grappling with distressing levels of youth unemployment. Apart from bridging the gap between the education provided to students and the real-world practical skills desired by employers, well-known firms could offer some form of certification at the end of the internship, providing comfort to prospective employers reviewing candidates for jobs. This could address a key question that employers often grapple with: “They can get the job, but can they get the job done?”

Under a pilot project, the first batch of 1.25 lakh interns will begin stints with voluntarily participating companies on December 2. While the government has consulted industry bodies before and after announcing the scheme, it is rightly cautious before scaling it up to meet the target of creating one crore internships by March 2029. The lessons learned from the pilot project will inform the final scheme design. Some insights will be apparent in the initial process of matching applicants to companies, but the full scope of outcomes can only be assessed after December 2025, when the interns re-enter the job market. Along the way, dropout rates and grievances will need to be monitored closely. A few features pose challenges, such as the plan to place interns within or near their district, and if that is not feasible, within their State. It is unclear how this will play out in less industrialised and less services-oriented States such as Bihar, which are likely to attract higher numbers of applicants. Just five States account for over half of India’s manufacturing output, and youth unemployment is higher in States with lower business presence. Apart from shop floor skills, the scheme also needs to incorporate digital and soft skills that are vital for the modern workplace. The pilot project’s trajectory requires a diligent and candid evaluation without a self-congratulatory approach, ensuring that intended outcomes are eventually met.

Published - October 07, 2024 12:15 am IST