According to a report by TeamLease EdTech, a majority of Indian companies have expressed support for the Prime Minister's Internship Scheme (PMIS), but a significant number are reluctant to absorb interns as full-time employees. A survey that polled 932 companies found that while 81% of businesses support the extension of the scheme to all companies, only 73% are willing to offer full-time positions to a small fraction of the interns, usually up to 10%.

PMIS, which is a scheme for increasing youth employability through corporate engagement. The scheme involves the top 500 companies agreeing to provide internship opportunities to 10 million youths over the next five years. According to a report by TeamLease titled From Learning to Earning: The Role of CSR in Transforming Education into Employability, while there may be broad consensus on the scheme, most corporates are quite hesitant about extending long-term employment post-internship.

In the results of the survey, evidence of the changing trend of corporates in strategies was found. It was revealed that 34.43% of firms are willing to provide up to 20% of CSR for these programmes. This means that there is adequate alignment between CSR investments and internships. Thus, this is a radical change on how businesses view their involvement in youth employability. However, 22.81% businesses are only willing to forego up to 5% of the CSR fund for such programmes.

The major findings of the survey are the increased focus on tech roles in internship programs. Almost 76% of the respondents said they would prioritize technology-related positions for internships. This shift is a reflection of the growing demand for digitally skilled talent across industries. “With the majority of companies focusing on tech roles and committing to meaningful absorption rates, we’re witnessing a strategic transformation that goes beyond traditional CSR”, said Shantanu Rooj, Chief Executive of TeamLease EdTech.

The duration of internships also emerged as an important consideration for companies. Around 73% of companies believe that the ideal duration for internships is between 1 to 6 months. This period is considered ideal for skill development without affecting operational efficiency. However, about half of the companies (45.95%) felt that budgetary constraints were the major constraint in utilizing CSR funds to the fullest extent for internship programs. Under the PMIS, CSR funds can be utilized to sponsor part of the stipend, but the entire stipend cannot be subsidized through CSR allocations.

The other challenge the report identified was that it was difficult to find the right type of interns. According to the report, 37.84% of companies are concerned about the gap between the skills of available interns and the specific requirements of their organizations. This problem shows that there is a need for focused university programs that can help bridge the skill gap and align the interns with industry needs. In addition, 32.43% of organizations stated that through partnerships with the universities and corporates, they could maximize the utilization of the internships.

Despite these challenges, there is a sense of optimism regarding the social returns on investment from CSR-driven internship programs. More than 54% of respondents expect a tangible social return on investment within 1 to 2 years. This positive outlook reflects a broader shift toward more collaborative and outcome-driven approaches to talent development, with businesses recognizing the long-term benefits of investing in youth employability.

Jaideep Kewalramani, Head of Employability Business at TeamLease EdTech, said, "The near perfect overlap of CSR funds with internship programs marks a sea change in the investment strategy of most employers". The more companies move towards the PMIS, the more central the role of internships becomes to corporate social responsibility efforts in terms of shaping future talent and enhancing employability in India.

Thereafter, the PMIS has attracted support from many corporate houses in the country, especially in India; however, major challenges arise by absorbing the selected interns to absorb them in proper full-time. However, increased focus on acquiring tech roles for the youths combined with strategic relationships and CSR-motivated interning opportunities leads to the evolution of youth employment in India, which has completely changed its colors.