Punjab's Struggle with Youth Unemployment Reflects in PM Internship Scheme Response
Punjab, a state grappling with persistently high unemployment among its educated youth, has recorded a notably low response to the Modi government's flagship Prime Minister Internship Scheme. Data reveals concerning figures in both participation levels and retention of candidates, underscoring the challenges in bridging the gap between academic learning and workplace experience.
Scheme Overview and Objectives
The Prime Minister Internship Scheme is a strategic initiative launched by the Government of India as part of a broader push towards skill development and employment generation. It aims to provide structured internship opportunities to young people by placing them in leading companies across various sectors. Selected interns receive a monthly stipend of Rs 5,000, designed to support them during their 12-month internship period.
Round I Performance: Punjab's Disappointing Numbers
In Round I of the pilot project, Punjab recorded 742 internship offers, of which only 223 were accepted, resulting in an acceptance rate of approximately 30.1%. This figure fell below the national average acceptance rate of 34.3%. More alarmingly, only 21 interns from the state completed their internships as of January 27, 2026. This translates to a completion rate of about 2.83% of total offers and roughly 9.4% of accepted offers.
At the all-India level, 82,077 internship offers were made in Round I, with 28,141 acceptances and 3,417 completions. The data was tabled in the Rajya Sabha on February 3, 2026, by the Ministry of Corporate Affairs in response to a question by Dr. Vikramjit Singh Sahney.
Comparative Analysis with Neighboring States
Neighboring states showed varied performance. Haryana recorded 5,990 offers in Round I, with 1,293 acceptances and 99 completions, yielding an acceptance rate of about 21.6%. Himachal Pradesh saw 929 offers, 177 acceptances, and 43 completions, with an acceptance rate of roughly 19.1%. While Punjab's percentage acceptance was higher than both Haryana and Himachal Pradesh, the overall volume of internship generation remained significantly lower than Haryana.
Among larger states, Uttar Pradesh led with 11,563 offers and 4,656 acceptances in Round I. Madhya Pradesh followed with 6,244 offers and 2,058 acceptances, while Bihar recorded 5,668 offers and 2,418 acceptances.
Round II Trends and Acceptance Rates
Round II of the pilot project saw 83,696 offers made nationally, with 24,638 acceptances, reflecting an acceptance rate of approximately 29.4%. In Punjab, 2,255 offers were made in Round II, and 472 were accepted, giving the state an acceptance rate of around 20.9%. Haryana recorded 1,780 offers and 601 acceptances in Round II, translating into an acceptance rate of about 33.8%, while Himachal Pradesh saw 410 offers and 106 acceptances, with an acceptance rate of approximately 25.9%.
Implementation Timeline and Budget Details
The pilot project began on October 3, 2024, and is currently under implementation. Completion dates for Round I internships fall between November 2025 and March 2026, while Round II internships are scheduled for completion from April 2026 onwards, depending on the date of joining.
For the financial year 2025-26, an amount of Rs 10,831.07 crore was allocated to the Ministry of Corporate Affairs for the PM Internship Scheme at the Budget Estimate stage, which was later revised to Rs 506 crore. As an initiation measure, a pilot project with a budget of Rs 840 crore was approved. A total of 353 companies provided internship opportunities in Round I and Round II of the pilot project.
Broader Implications for Youth Employment
The low response and completion rates in Punjab highlight systemic issues in engaging educated youth with government-led employment schemes. Despite the scheme's intent to enhance skills and job readiness, factors such as awareness, accessibility, and alignment with local industry needs may be contributing to the subdued performance. This scenario calls for targeted interventions to improve uptake and outcomes in regions with high unemployment.
