The first phase of the program is designed to offer internships to 30 lakh (3 million) youths over two years, with an allocated budget of Rs 19,000 crore. Each intern will be eligible for a monthly stipend of ₹5,000, translating to an annual financial support of around ₹60,000.
The funding for this initiative comes primarily from taxpayers, with the government allocating ₹54,000 per intern per year. Companies participating in the scheme will contribute an additional ₹6,000 per intern from their Corporate Social Responsibility (CSR) funds. However, participation is voluntary, meaning that companies can choose whether or not to partake in the program.
For companies that opt to join, the government mandates that they provide a genuine working experience to the interns. Notably, the finance minister’s speech did not specify that the 500 companies offering internships must be listed entities, thus widening the scope for participation.
The feasibility of the program depends heavily on the willingness and capability of companies to meet the proposed targets. For instance, companies on the Nifty 100 index, which comprises some of India’s largest and most influential firms, face the task of offering 6,000 internships each. This breaks down to approximately 3,000 internships per year per company.
Top employers like Tata Consultancy Services (TCS), Reliance Industries (RIL), and Infosys, with their large employee bases, appear well-positioned to meet these targets. TCS, with a workforce of about 6 lakh, and RIL, with nearly 4 lakh employees, can feasibly accommodate the required number of internships. However, many firms within the Nifty 100 index, particularly those in the IT sector, traditionally do not offer internships, posing a potential challenge.
On the other end of the spectrum, companies with smaller workforces, such as Tata Consumer Products with 3,500 employees and Adani Power with just 3,000, may find it challenging to meet the internship requirements. For these companies, providing 3,000 internships could be a daunting task.
As of now, the details of the scheme are still evolving, with the budget yet to be cleared and specific rules yet to be notified. The finance minister’s reference to 500 top companies without additional clarity leaves room for further developments. Phase 2 of the scheme will pose an even greater challenge, with a target of providing 4,600 internships per year for the following three years.
While the proposed youth internship program holds promise for enhancing job opportunities and gaining practical experience, its successful implementation will depend on the cooperation of both the government and participating companies. The coming months will reveal more about the scheme’s final structure and its potential impact on the job market.