Budget cuts ₹10,000 crore internship scheme to ₹4,788cr
The government has slashed funding for the Prime Minister's Internship Scheme (PMIS) by 56%—down to ₹4,788 crore for 2026-27, compared to last year's ₹10,831 crore.
PMIS was launched to offer internships to one crore youth aged 21-24 in top companies across sectors like pharma, auto, banking, and telecom.
Why are students rejecting offers?
While the scheme promised a monthly ₹5,000 stipend and extra perks like insurance and a one-time grant, it's struggling—only about one-third of offers are being accepted.
Strict eligibility rules (excluding IIT/IIM grads and families earning over ₹8 lakh) plus low urban incentives mean many young people aren't accepting offers or finishing their internships.
With less funding now, opportunities could shrink even more for those who need them most.