Why the PM's internship scheme is stressing out corporate India | Daybreak | The Ken

Summary

The Indian government's internship scheme aims to create 10 million internships over five years to combat youth unemployment. While the initiative targets diverse backgrounds, excluding graduates from top institutions, corporate leaders express concerns about their capacity to train and manage such a large influx of interns. Issues include a significant skills gap among graduates and an inadequate stipend of 5,000 rupees per month. Experts argue that for the scheme to succeed, a holistic approach is needed, ensuring that educational programs align with market demands and that companies are equipped to support interns effectively.

Takeaways

• 😀 The Prime Minister's internship scheme aims to provide 10 million internships to students over five years, targeting youth unemployment in India.
• 😀 Students from prestigious institutions like IITs and IIMs, as well as those with professional degrees, are not eligible to apply, promoting diversity in the applicant pool.
• 😀 Corporates are concerned about their capacity to hire and train 2 million interns annually, leading to uncertainty about participation in the scheme.
• 😀 Registration for the scheme opened on October 12, and by the next day, 150,000 students had already signed up.
• 😀 Many companies express confusion and lack of readiness regarding the internship scheme, as they were not fully informed about it until recently.
• 😀 The scheme may require companies to restructure their entry-level hiring strategies and workflow to accommodate a large influx of interns.
• 😀 The government will fund 90% of the stipend for interns, but companies face hidden costs in training and managing these interns.
• 😀 A successful internship program needs adequate mentorship, training infrastructure, and managerial support to ensure meaningful experiences for interns.
• 😀 There is a significant skills gap in the workforce, with many fresh graduates lacking essential skills needed by employers, especially in tech and non-tech sectors.
• 😀 A holistic approach is necessary for the internship scheme to succeed, focusing on aligning educational programs with market demands and improving stipend compensation.

Q & A

What is the primary goal of the Prime Minister's internship scheme?

The primary goal of the internship scheme is to address youth unemployment in India by providing 10 million internships to students over the next five years, particularly targeting those from diverse backgrounds.

Who is excluded from applying for these internships?

Students from premier institutes like IITs and IIMs, as well as those with professional degrees such as CA and CMA, are not allowed to apply.

What concerns do corporates have regarding the internship scheme?

Corporates are concerned about their ability to hire and manage the influx of 2 million interns per year, as they fear they may lack the resources and bandwidth to train and retain such a large number.

How many students registered for the internship scheme within the first day?

Within the first day of registration, 1.5 lakh (150,000) students had already signed up.

What challenges do companies face with the potential influx of interns?

Companies face challenges such as needing to provide sufficient work for interns, managing a larger workforce, and ensuring they have adequate managerial support and training infrastructure in place.

What is the financial support the government offers for interns?

The government will fund 90% of the stipend for interns, which amounts to 4,500 rupees of the 5,000 rupee stipend.

Why do industry stakeholders express concerns about the skill levels of graduates?

Industry stakeholders express concerns because a significant percentage of fresh graduates lack the essential skills required for their roles, with estimates indicating that 25% in the tech sector and over 40% in non-tech sectors are underqualified.

What does the transcript suggest about the adequacy of the internship stipend?

The transcript suggests that a stipend of 5,000 rupees is insufficient for interns, as it barely covers transportation costs and does not account for living expenses.

What is the expected impact of the internship scheme on companies' hiring strategies?

Companies may need to rethink their entry-level hiring strategies, potentially redistributing work and modifying their hiring headcount to accommodate the influx of interns.

What holistic approach is suggested for the internship scheme to be successful?

For the scheme to be successful, it should take a holistic approach by ensuring that students have a strong academic foundation and that the internships are aligned with market demands, not just placing interns at companies.