Why the PM's internship scheme is stressing out corporate India

Daybreak

The PM’s internship scheme wants to provide 10 million internships to freshly minted students over the course of the next five years. Students from premier institutes like IITs and IIMs or students with professional degrees like CA, CMA or masters are not allowed to apply. The idea is to address India’s problem of youth unemployment by making students from lower socio-economic backgrounds employable and giving them real world exposure. It sounds great. If it is implemented well, the scheme has the potential to challenge deep-rooted hiring biases that exist in the job sector in India.

However, 10 million interns in five years is making corporates uneasy. They’re overwhelmed because they don't know how many interns they can hire. Two million interns per year between 500 odd top companies is a lot and corporates are unsure if they have the resources and the bandwidth to train and retain these interns and then deal with another two million pool the following year. The scheme opened up for signing up to students on Saturday, Oct 12. Within one day more than 1 and a half lakh students had already registered according to news reports.

But because the scheme doesnt really have a sector specific approach, it is highly likely that we have a problem-solution mismatch coming our way.

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