The Indian government is set to introduce a new initiative that requires the top 500 companies to provide internships based on a “voluntary quota system” linked to their Corporate Social Responsibility (CSR) expenditure. This move, part of the employment package announced in the Budget 2024–25, aims to give marginalized individuals access to valuable work experience.
What to Expect from the New Internship Quota System
Finance Secretary TV Somanathan revealed that the government plans to discuss and finalize the details of this quota system in collaboration with the industry. The concept is to have companies take on a certain number of interns proportional to their CSR spending. “We might perhaps have some kind of voluntary quota system, mutually agreed upon,” Somanathan explained. Additionally, companies will be allowed to utilize their supply chain for skilling purposes.
Focus on Marginalized Candidates
The internship program is designed to benefit those who typically miss out on traditional recruitment channels. “We won’t be giving them the type of people they would normally recruit because we don’t want to subsidize hires they would have made anyway,” Somanathan stated. To ensure this, a “negative list” will be implemented. This list will exclude candidates from prestigious institutions like IITs and IIMs, those already paying income tax, or individuals whose parents are government servants.
Interns will be selected based on “objective criteria” with the help of design challenges and open suggestions for improvement. The Finance Secretary is confident that the quality of internships will be high, given the reputations of the top 500 companies involved.
Prime Minister Modi’s Vision for Private Sector Involvement
The initiative to involve the private sector in skill development was driven by Prime Minister Narendra Modi. According to sources, Modi believed that the private sector’s role in skilling is crucial and that the government alone cannot handle it. This vision was reflected in the recent Union Budget, where Finance Minister Nirmala Sitharaman announced the Prime Minister’s Package for Employment and Skilling with an impressive outlay of Rs 2 lakh crore.
Key Details of the Internship Scheme
As part of this package, internships will be provided to 1 crore youth over the next five years by India’s top 500 companies. Interns will gain hands-on experience in real-world business environments across various professions. Each intern will receive a monthly allowance of Rs 5,000 and a one-time assistance of Rs 6,000. Companies will cover the training costs and contribute 10% of the internship costs from their CSR funds.
This initiative aims to create meaningful opportunities for those often overlooked in conventional hiring practices and ensure they gain valuable experience in their chosen fields.