Corporate India is hiring interns like never before. A recent survey revealed a 25% year-on-year increase in internship opportunities for Indian students in 2024. And while this is a trend that is powerfully driven by a business need, it also seeks to address an underlying concern over lack of opportunities for a growing number of graduates who are struggling to find work.
In March 2024, the International Labour Organization and the Institute for Human Development published a report on employment in India. One of its key findings was that unemployment levels were higher among educated people, with the highest rates for those with first or higher degrees.
Ten million internships are to be offered over the next five years
To date, the Indian government has launched a slew of employment generation schemes targeting various sectors. There have also been a dozen flagship programmes such as Digital India, Make in India, Start Up India and the Amrut scheme, all aimed at boosting employment.
Active role
Further support was offered in the 2024/25 Budget, when the government introduced the Prime Minister’s Internship Scheme (PMIS). Under the scheme, India’s 500 biggest companies will offer 12-month internships over the next five years to 10 million young people from low-income households.
The scheme provides an internship allowance of 5,000 rupees (US$58) a month to each candidate, along with a one-off payment of 6,000 rupees. The participating companies can use their corporate social responsibility funds to pay training costs and 10% of the internship costs.
The government meanwhile is playing an active role and has set up a mobile app for PMIS candidates. It is also providing insurance cover for each intern. What’s more, the PMIS allocation has soared from 3.8bn rupees in 2024/25 to 108.3bn (US$1.25bn) in the 2025/26 Budget.
Business initiatives
Companies participating in the programme are also partnering with their supply chain networks to provide internship opportunities. Large companies such as Reliance Industries, Tata Consultancy Services, Maruti Suzuki India, Mahindra & Mahindra and Larsen & Toubro are taking part in the scheme.
Accountancy firms continue to offer a substantial number of internships
Deloitte is one Big Four firm offering PMIS internships, as are numerous banks, insurers and financial services businesses. For India’s accountancy sector in general, skills shortages often reflect inexorably rising demand from a globalising and fast-growing economy, and KPMG, Deloitte, Grant Thornton Bharat, BDO and Nangia Andersen are among those currently engaged in major recruitment drives in India. Individual accountancy firms also continue to offer a substantial number of annual non-PMIS internships.
While PMIS has given a platform to companies to seek interns from all across India, many industry organisations have been running their own internship programmes for some time. For example, in 2022, the Association of Mutual Funds of India launched one to train young mutual fund distributors.
Similarly, the National Skill Development Corporation (NSDC) introduced an internship programme in 2022 for university students, in partnership with Acuvisor Insurance Brokers. NSDC also collaborates on Project Amber with Generation India Foundation to provide training in high-demand sectors such as healthcare, customer service, green jobs and technology.
Changing landscape
Technological advances are constantly reshaping the skills needed by the industry. According to a Nasscom-BCG report, the global artificial intelligence (AI) market is currently growing at 25%–35% year on year and is expected to reach US$320bn–380bn by 2027, while the demand for AI talent in India is projected to grow at 15% year on year.
The financial services sector is further along the digital skills curve than many others. It has been a digital transformation leader in India, improving customer experience, regulatory compliance, security and innovation.
With rapid advances in technology, many of the 371 million people between the ages of 15 and 29 lack the skills needed for today's modern economy. To address India's skills gap over the longer term, one sustainable approach would be to reform the education system and integrate digital skills into the curriculum. For now, internships will play a crucial role in equipping young people with the skills needed to thrive in today's evolving job market.
