Objective of the Scheme:
- Aimed at bridging skill gaps and enhancing employability for India’s youth.
- Launched in the Union Budget 2024-25, it mandates the top 500 companies to offer internships to 1 crore youth over the next five years.
Relevance : GS 2(Schemes , Education )
Survey Insights:
- 81% of India Inc. Backing the Scheme: Positive feedback from 932 surveyed companies, emphasizing the increasing role of internships in enhancing youth employability.
- 10% Absorption Rate: 73% of companies plan to absorb at least 10% of their interns as full-time employees after the internship.
- Focus on Tech Roles: 76% of companies are prioritizing tech-based roles, underscoring the demand for digitally skilled professionals.
- CSR Allocation: Over 30% of companies intend to allocate up to 20% of their CSR budgets to internship programmes, highlighting corporate commitment to social responsibility and skill development.
Company Preferences for Internships:
- Internship Duration: More than 70% of companies prefer short-to-medium-term internships (1-6 months), considering it ideal for skill development without long-term commitments.
- Collaborative Approach: 32% of companies prefer partnerships with universities and corporates for internships to maximize impact and increase outreach.
Financial Aspects:
- Interns will receive a monthly stipend of ₹5,000, with companies able to use CSR funds to cover a part of the stipend and training costs.
Expansion Support:
- Support for Scheme Extension: 81% of companies advocate for extending the internship scheme to all corporations, suggesting a broader impact.
- Social Return on Investment (SROI): 54% of companies expect measurable SROI from CSR-driven internships within 1-2 years, indicating potential long-term value.
Future Implications:
- The scheme presents a potential model for expanding internships to smaller companies, which could further enhance youth employability and skill development across industries.
