Paid Internship Opportunities

To boost employment and enhance India's skilling capacity

Union Budget 2024-25 promises paid internship scheme for the youth and aims to target 1 crore youth over the next 5 years, providing them with government-mandated internship opportunities across the country's top 500 companies. A monthly stipend of ₹5,000 and a one-time assistance sum of ₹6,000 is being ensured for every intern. The companies participating in this initiative will be undertaking the cost of training the interns on-board, partially funded via their CSR budget.

An enticing opportunity, will this paid internship scheme boost employment in an effective manner? Will this engagement with the private sector for skilling and employment fructify into meeting the scheme’s demand? Do the companies have the capacity to take in and skill such a large number of youngsters? Corporate Citizen brings you views from some of our corporate leaders on what they have to say about the promising paid internship scheme and what is it all about

Will they be able to manage and scale?

-PRAVEEN SINGH,
CEO, AASOKA by MBD Group

The Union Budget 2024’s new internship scheme aims to provide hands-on experience to 1 crore young individuals over the next five years. The scheme offers a monthly stipend of ₹ 5,000 and a one-time assistance of ₹6,000, with training costs covered by companies through their CSR budgets, which is a well-thought-out initiative. This programme is designed to create a pipeline of skilled, job-ready youth, by integrating the private sector into youth skilling and employment efforts. At AASOKA, we complement this scheme with our teacher training programmes across schools, enhancing educators’ skills to deliver high-quality instruction that meets job market needs. By aligning our initiatives with the Union Budget 2024 scheme, we aim to better prepare students for these internship opportunities, contributing to a well-rounded approach to youth employment. However, the success of the scheme depends on companies’ ability to manage and scale their internship programmes to meet demand. Engaging the top 500 companies to leverage their resources and CSR budgets is strategic, but it requires financial investment and robust systems for training and mentoring interns. Effective collaboration between the government and the private sector will be crucial.

The real cost is far bigger

-SUCHETA DALAL,
Renowned Business Journalist and Managing Editor, Moneylife

The government, as usual, passes on its own responsibility for training people to the private sector. While it may sound like a good deal that it allows companies to use CSR funds for the internship payment, that is hardly enough.

In a place like Mumbai, paying for the real estate of a table space for the interns, computers that they will use, giving them connectivity - are far bigger costs than paying a stipend of ₹ 5,000 or 10,000.

I think it's badly thought through. Maybe some large listed companies can do it but even for them, the real cost is far bigger. Also, this is the government's responsibility.

It’s not clear how without any tax breaks they can pass it onto the private sector.

Scaling one crore interns is challenging

-PREET SANDHUU,
Founder and Director, AVPL International

The scheme has enormous potential for employment generation. At one level, it bridges the skill gap by making available structured on-job training, and at another level it makes one crore youth job-ready. They will now have practical experience and industry-specific knowledge that the employers are looking for. Exposing interns to different roles and company cultures will fine-tune their skill sets. The pipeline of skilled talent so created reduces recruitment costs apart from reducing training costs also for the companies, hence providing them with the incentive to convert the interns into full-time employees, thus directly boosting employment figures. However the scheme’s success will ultimately depend on the relevance and quality of the training, its placement success rate, and its reach across diverse backgrounds. If properly conceived and implemented, infusing this large skilled workforce into the market will spur economic growth. The private sector’s involvement is promising, but scaling one crore interns is challenging. Effective training and absorption require careful assessment, expanded programmes, and increased resources. Ensuring diversity in industries and equitable regional opportunities is crucial. Engaging smaller businesses can boost job potential. Government support is vital to prevent regional inequalities. Despite challenges, companies gain enthusiastic talent, and interns acquire skills, bridging the education-employment gap for Indian youth.

Will companies have the necessary resources?

-SAURABH SRIVASTAVA,
Director, Head ESG Data Research, Sustainalytics – Morningstar

The effectiveness of the scheme will depend on its implementation and whether it can navigate bureaucratic challenges to ensure that interns are adequately trained and employed post-internship. I feel that if this is implemented well, a number of benefits can be realised:

• A large number of youths can be equipped with relevant skills and exposure to professional environments, which could lead to better job opportunities in the future.
• The inclusion of a stipend is particularly significant, as it addresses concerns about unpaid internships.
• Moreover, the government’s allocation of ₹ 1.5 to 2 lakh crores for education and employment initiatives suggests a commitment to enhancing the employability of the youth. I expect that with the right implementation, this scheme will not only provide immediate financial support but also foster a culture of skill development, ultimately leading to a more competent workforce overall. We have the seen the power of public-private partnerships in many areas in our country. The collaboration with the private sector is crucial for the success of this internship scheme—particularly from the point of view of training interns (corporates can unlock higher bandwidth), and funding via CSR initiatives. Having said that, while many top companies have the infrastructure and resources to participate, the challenge lies in their willingness and ability to scale up training programmes to meet the demand of 1 crore interns over five years. Additionally, the selection criteria for interns, which emphasises those with lower employability, suggests a focus on inclusivity. However, it raises questions about whether companies will have the necessary resources and commitment to provide meaningful training and job placements for such a large cohort of interns. The scheme’s success will ultimately hinge on how well these companies can integrate interns into their operations and whether they view this initiative as a genuine opportunity for skill development rather than a mere obligation.

Companies need to expand training capabilities

-PRANAB KUMAR CHANDA,
Head of Economic Well-Being, Social Protection and Livelihood at Bal Raksha Bharat

The strategic design of a paid internship scheme is aimed at improving employment outcomes for young people. The scheme provides structured internships, enabling participants to gain practical skills not typically covered in academic settings. By bridging the gap between theoretical knowledge and real-world application, it makes participants more competitive in the job market. The scheme offers financial support through monthly stipends and a one-time assistance payment, allowing interns to focus on skill acquisition and professional development without financial stress.

Additionally, internships offer valuable networking opportunities with industry professionals, paving the way for mentorship, job referrals, and insights into the industry. The participation of top companies ensures that internships are aligned with current industry standards and practices. By integrating the scheme with Corporate Social Re- sponsibility (CSR) budgets, participating companies demonstrate a vested interest in developing young talent, which can lead to more robust mentoring and increased hiring prospects for interns. However, scaling these programmes to accommodate a high volume of interns will require companies to expand their training capabilities. This may involve developing new methodologies and leveraging advanced technologies to manage the increased demand. Companies must provide meaningful, industry-relevant experiences without compromising on quality of training. Different industries may face sector-specific challenges in integrating and training large numbers of interns, necessitating more extensive planning and resource allocation. Clear guidelines, effective support structures, and ongoing monitoring are essential to address logistical issues. The scheme’s success depends on companies’ ability to scale their programmes, maintain high training standards, and adapt to the influx of interns. Strategic planning and collaboration will be key to effectively achieving the scheme’s goals.

Effective skilling for employment

-VINEET SHUKLA,
DGM-HR, Emcure Pharma Ltd

This will surely boost the employment in effective manner as there is a potential to create a talent pool and utilise this scheme for deploying resource by optimising cost. The only challenge in making this scheme successful is the way the supervisors approach the scheme and the department head’s willingness to take efforts in skilling of these youngsters. Due to high performance pressure and target demands the success of such schemes largely lies on how the skilling efforts are prioritised to make them future ready and also about holistic development, both for current and future potential development. Many organisations have cracked the code of doing this effectively. The capacity to take and skill such a large number depends partially on infrastructure readiness and also future business potential. Infrastructure readiness for different organisations can be at different levels but future business potential depends on future business scenario, market demands and overall economy of the nation. There are few sectors that will boom owing to infrastructure development needs of a developing economy who can look at deploying resources relatively in larger number.

Great boost to the career of a fresher

-AVANTIKA BHARADWAJ,
Senior Director - Culture and People Experience, ENSONO

Internship opportunities are not new even those with government’s support. It goes back to early 2000s when apprenticeship was pushed a lot by government and now there is a scheme by government of India of providing internship through tie-ups with the private sector in the Year 2024 budget. Employability in India is hovering around 51% as quoted in The Economic Times early this year. Skilling through on the job training or internships has always been a good way of moving the employability up and this scheme should also help see the improvement in the employability in our country. Personally, I have witnessed that the students who have gone through the internship programmes in various corporates were better prepared to go full-fledged on their first job. However, I think government may need to look at the stipend down the line due to cost of inflation and also that top 500 companies will require students to go to their offices in metro cities where the cost of living is high. Most of large projects would be running from the main/ head offices of these corporates and these offices are in named Indian cities. Almost 25-30% of workforce of top 3 Indian companies come through campus hires, however Year 2024 has been slow and less campus drives are expected by the companies. In such a case, freshers may need to look for job options through off-campus. Internships can help in getting the student ready if they need to hunt jobs on their own. Indian companies have business and industry will see an uptick, however not many companies are willing to extend the internship if the business is not assured. In this scenario, if government mandates or supports internships in the private sector then it will be a great boost to the career of a fresher.

Collaboration with the private sector is a crucial element

-PRADY KUMAAR,
CEO and Managing Partner, NP Digital India

The Union Budget 2024’s paid internship scheme is a game-changer in connecting education with employment. By targeting 1 crore youth over the next five years and providing them with valuable internship opportunities at the country’s top 500 companies, would make a significant impact. With a monthly stipend of `5,000 and a one-time assistance sum of `6,000 for each intern, the scheme supports financial stability, ensuring young talents to gain essential industry experience. This structured pathway is poised to effectively boost employment by equipping interns with the skills and experience needed to thrive in the job market. The collaboration with the private sector is indeed a crucial element of this scheme’s success. Participating companies are committed to support the training and development of interns. The partnership is aimed at addressing the skill gaps, ensuring that a large number of youngsters receive necessary training and experience. Given the established training infrastructures of the private sector, they are well-equipped to meet the demand and provide high-quality skill development for the interns. Overall, the scheme’s design and the private sector’s involvement create a robust framework to effectively achieve its ambitious goals.

Structured pathway for practical experience

-DR. SAMEER JAIN,
OSD to President and Chancellor, NICMAR University

The Union Budget 2024’s Paid Internship Scheme is a promising initiative aimed at tackling youth unemployment and boosting employability. By targeting 1 crore youth and collaborating with 500 top companies, the scheme provides a structured pathway for skill development and practical experience. The monthly stipend of ₹ 5,000, along with a one-time assistance of ₹ 6,000, ensures financial support for interns, making the opportunity accessible to a broader demographic. Engaging the private sector in this endeavour is strategic, as it aligns companies’ CSR goals with national employment objectives. Companies can leverage this initiative to identify and groom potential talent, reducing recruitment costs and risks. However, the scale of the scheme raises questions about the capacity of companies to absorb and effectively train such a large number of interns. The voluntary nature of participation may limit the reach, as not all companies may have the resources or inclination to engage. While the scheme is well-intentioned, its success will hinge on the private sector’s ability to integrate these interns into meaningful roles and provide genuine skill development. If implemented effectively, this could be a significant step towards bridging the skills gap and enhancing employability. However, the actual impact will depend on sustained commitment from both the government and the participating companies to ensure that the scheme’s goals are met without diluting the quality of training and experience provided. At the National Institute of Construction Management and Research (NICMAR) University Pune, we support this approach and encourage companies to fairly compensate interns during their 12-week programmes, fostering motivation and excellence in their work. The majority of companies offer competitive compensation and pre-placement offers during internships, although a few do not, which remains a concern.