Prime Minister’s Internship Scheme Sees High Application Rate

The Prime Minister’s Internship Scheme was launched to provide youth with valuable internship opportunities. Announced in the 2024 Union Budget, this initiative aims to connect one crore young individuals with internships in the top 500 companies over five years. The pilot project commenced on October 3, 2024, and has already received interest.

Scheme Overview

The Prime Minister’s Internship Scheme is designed to encourage practical experience among youth. It targets a vast number of internships, with a goal of 1.25 lakh opportunities for the 2024-25 period. The scheme is accessible through an online portal, allowing companies to post available positions.

Application Statistics

As of December 29, 2024, the scheme has received approximately 6.21 lakh applications. This figure far exceeds the 1.27 lakh available internships. The selection process is currently ongoing, reflecting the high demand for such opportunities among young people.

Financial Support for Interns

Interns participating in the scheme will receive a monthly stipend of ₹5,000 for 12 months. The Union government will contribute ₹4,500 of this amount, while the remaining ₹500 will be provided by the companies, funded through their corporate social responsibility (CSR) initiatives. Additionally, each intern will receive a one-time grant of ₹6,000 for incidentals upon starting their internship.

Registration and Compliance

To participate in the scheme, individuals must complete their Know Your Customer (KYC) registration. Approximately 4.87 lakh youths have registered on the internship portal, indicating strong engagement. The Corporate Affairs Ministry is monitoring compliance with the scheme’s guidelines.

Impact on Cost Audit Compliance

In tandem with the internship scheme, the Corporate Affairs Ministry has introduced measures to enhance compliance in cost audits. Advisories issued during the financial year 2023-24 have resulted in a 14% increase in the timely submission of cost audit reports. This reflects the ministry’s commitment to improving corporate governance.

Future Prospects

The Prime Minister’s Internship Scheme is expected to evolve as more companies participate and additional opportunities arise. The ongoing selection process will determine how effectively it meets its ambitious targets. The scheme’s success will depend on the collaboration between the government, companies, and the youth.

Questions for UPSC:

1. Critically analyse the role of internship schemes in enhancing employability among youth in India.
2. Explain the significance of corporate social responsibility in funding government initiatives like the Prime Minister’s Internship Scheme.
3. What are the potential benefits of increased compliance in cost audits for companies? How does it impact the overall economy?
4. What is the importance of KYC registration in government schemes? Discuss its implications for transparency and accountability.

Answer Hints:

1. Critically analyse the role of internship schemes in enhancing employability among youth in India.

1. Internship schemes provide practical experience, bridging the gap between education and employment.
2. They enhance skill development, making youth more attractive to potential employers.
3. Exposure to real-world work environments encourages networking opportunities and professional relationships.
4. Internships can lead to job offers post-completion, directly impacting employment rates.
5. Government-backed schemes like the Prime Minister’s Internship Scheme increase accessibility to internships for a larger demographic.

2. Explain the significance of corporate social responsibility in funding government initiatives like the Prime Minister’s Internship Scheme.

1. CSR funding allows companies to contribute to social causes while fulfilling regulatory obligations.
2. It enhances corporate reputation and builds goodwill among stakeholders and the community.
3. CSR funds can provide financial support for government initiatives, reducing the financial burden on taxpayers.
4. Engaging in CSR aligns corporate strategies with national development goals, encouraging a collaborative approach.
5. It encourages companies to invest in human capital, promoting sustainable economic growth.

3. What are the potential benefits of increased compliance in cost audits for companies? How does it impact the overall economy?

1. Increased compliance improves transparency and accountability in financial reporting for companies.
2. It mitigates risks of financial mismanagement and fraud, enhancing investor confidence.
3. Timely submissions of cost audit reports can lead to better resource allocation and operational efficiency.
4. Improved compliance contributes to a healthier business environment, attracting more investments.
5. On a macroeconomic level, it encourages economic stability and growth by ensuring fair market practices.

4. What is the importance of KYC registration in government schemes? Discuss its implications for transparency and accountability.

1. KYC registration helps verify the identity of participants, reducing fraud and misuse of funds.
2. It ensures that benefits reach the intended beneficiaries, promoting equity in government initiatives.
3. KYC processes enhance data accuracy, facilitating better monitoring and evaluation of schemes.
4. Transparency in KYC registration builds trust between the government and citizens, encouraging participation.
5. It contributes to overall governance by holding participants accountable for their actions within the schemes.