The government is set to launch a significant initiative for college and university students, aiming to simplify the process of securing internships. This new programme will also include internship allowances for the youth. The plan involves collaboration with the top 500 companies in India under a ‘volunteer quota system,’ as part of the employment package announced in the Budget 2024-25.
Finance Secretary TV Somanathan explained that the quota system will be linked to the Corporate Social Responsibility (CSR) expenditure of these companies. The details are still being worked out in consultation with the industry. The system will likely require companies to take a certain number of interns based on their CSR spending. The government will also offer access to its backward and forward supply chain for skill development, aiming to benefit people from marginalised sections of society.
Somanathan clarified that the programme is not intended to subsidise companies for hiring individuals they would normally recruit. A ‘negative list’ will be established, excluding candidates like IIT, IIM graduates, chartered accountants and children of government employees. The goal is to provide opportunities to those who are typically excluded from conventional recruitment channels.
Intern selection will be based on ‘objective criteria’. The programme’s specifics will be refined over time, with room for suggestions on its design. Given the involvement of the top 500 companies, the quality of internships is expected to be high, as these companies have reputations to uphold.
Sources indicate that the idea to involve the private sector in skill development came from Prime Minister Narendra Modi. He believes the private sector is better suited for the skill component of these schemes, complementing government efforts.
The Union Budget 2024-25, presented by Finance Minister Nirmala Sitharaman, includes a Rs 2 lakh crore package for employment and skills. The package aims to provide internships to 1 crore youth over the next five years through India’s top 500 companies. Interns will gain exposure to real-life business environments and various professions over 12 months. They will receive an internship allowance of Rs 5,000 per month and a one-time assistance of Rs 6,000. Companies are expected to cover 10% of the training and internship costs from their CSR funds.
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