India has launched a pilot internship project aimed at addressing a national unemployment crisis by providing 10 million young job seekers with crucial work experience. Focusing on people from marginalized socioeconomic backgrounds, the initiative is the largest of its kind to involve the country’s private sector.
The central government has enlisted 500 top Indian companies to offer internships in a range of sectors, including banking and financial services, IT and software, energy, retail, manufacturing, hospitality, education and entertainment. So far, more than 125,000 positions have been offered. College graduates aged 21 to 24 who are not currently employed or enrolled in a full-time educational course can apply through the Prime Minister Internship Scheme virtual hub.
Come December, successful applicants will begin a year-long internship and receive a one-time grant of 6,000 rupees ($99) and a monthly stipend of 4,500 rupees ($74) from the government, with companies expected to contribute a nominal additional amount of 500 rupees ($8) monthly from their Corporate Social Responsibility funds.
Though India already has reserved spaces for members of underserved communities in educational institutions and government services, labour experts are hailing the program as the first wide-scale, government-led model that urges corporate India to prioritize social inclusion and affirmative action. They are hopeful the project, to be rolled out in two phases over the next five years, will be a way to connect small-town candidates to opportunities in urban hubs.
Madhura DasGupta Sinha, chief executive officer of Aspire for Her, an organization that works for gender inclusion in the economy, believes the scheme could open doors for female graduates from more rural areas, who typically face barriers to employment and lack mentorship, professional networks and exposure to opportunities.
“The skill gap often results in low confidence during evaluations and interviews,” she said. “Their low employability quotient is compounded by an aspiration gap.”
However, awareness of the program so far remains low among students and recent graduates, Ms. Sinha said, emphasizing the need for targeted outreach. Aspire for Her is exploring ways to encourage more women to take advantage of the opportunity, she said, noting that some companies are opting to pay above the minimum stipend, which should help.
One strength of the program is that it plugs the gap between ambition and capability, pushing companies and aspirants to invest in skill-building together, said Atul Satija, founder and chief executive officer of the non-profit The/Nudge Institute.
“Traditionally, most of India has found jobs based on skills they have learned while doing work, not while studying. So it is a good step toward formalizing structured apprenticeship, since it is a very important part of raising the capacity of the next generation to participate in skillful jobs as our economy becomes more complex.”
But making sure the program provides participants with enough income – whether that is through companies supplementing the stipend or other means – is critical, experts agree.
“We need more clarity on whether students can work while they learn in these internships so their living costs can become subsidized to make it economically viable,” Mr. Satija said.
At an event in New York recently, Indian Finance Minister Nirmala Sitharaman named youth employability as the biggest challenge facing the Indian economy. According to the country’s most recent Economic Survey, only about 51 per cent of graduates are employable. Ms. Sitharaman has said the scheme will bridge gaps and should help young people get better job opportunities, especially in a global economy.
Industry, too, stands to benefit as it faces a growing talent shortage, said Chandrajit Banerjee, director general of the Confederation of Indian Industry. His organization is currently working with companies to develop action plans for their participation in the program.
But some experts wonder whether the scheme will actually lead to employment at the end of the internships.
“India sees 10 million people trying to enter the job market every year,” said Anup Srivastava, a labour specialist with an international think tank. “So while this first-of-its kind collaboration between the government and industry will open up new avenues in mainstream corporations, I have concerns that there is no job commitment.”
Since the interns would be expected to work, the government stipend should be matched by corporations, he said. “We need an overhaul of existing skill-building systems to increase employability in a long-term and holistic way, so that India can play a role in the work force of countries with a shortage of skilled workers.”