How Can HR Departments Ensure Mandatory Internships in Incentivized Industries are Meaningful and Not Exploitative?

On August 30, 2025, a state-appointed committee in Maharashtra recommended making internships mandatory for industries receiving government incentives under the upcoming New Industrial Policy. The proposed durations range from two to six months, and industries must report the number of internships in their annual audits. This move aligns with the National Education Policy (NEP) 2020 goals and seeks to boost graduate employability through real-world industry exposure. Discussions are ongoing with stakeholders before the final adoption.

For fresh graduates, this feels like a lifeline—real experience in real firms, not solo job searches. For startups and CA firms, this could mean managing interns alongside work—a mix of hope and hustle. HR teams must brace for integration challenges, cultural onboarding, and mentorship bandwidth. If done right, it's not just compliance—it can humanize workplaces by injecting youthful curiosity and learning levers. Otherwise, without support, the internship turns into exploitation.

Although not legislated, this proposal nudges industries to embed talent pipelines within incentive frameworks. Forward-looking HR functions should preemptively align internship programs with industry needs, designate faculty mentors, and track outcomes (like conversion rates). This isn't just compliance—it’s a strategic investment, building workforce resilience, youth leadership, and social license. Best-practice: publish internship dashboards in public annual reports to show impact and transparency.

If your firm offered internships under such a mandate, what role would excite you most?

How can HR ensure internships don’t become cheap labor—make them meaningful?

Ensuring internships are meaningful and not exploitative is a crucial responsibility for HR departments. Here are some steps they can take:

1. Define clear objectives and outcomes: Internships should have clearly defined goals and expected outcomes. This helps interns understand what they are working towards and what they can expect to learn.

2. Provide adequate support and mentorship: Interns should be assigned a mentor or supervisor who can guide them throughout their internship. This ensures they have someone to turn to for help and advice, preventing them from feeling lost or exploited.

3. Fair compensation: While internships are often unpaid, it's important to provide some form of compensation, whether it's a stipend, benefits, or academic credit. This helps to show that the company values the intern's work and time.

4. Feedback and evaluation: Regular feedback sessions can help interns understand their strengths and areas for improvement. This can also be a platform for interns to voice their concerns or suggestions.

5. Opportunities for growth: Providing opportunities for interns to learn new skills, take on challenging projects, and even transition into full-time roles can make the internship more meaningful and rewarding.

By implementing these practices, HR departments can ensure that internships are a valuable experience for both the intern and the company, rather than a source of cheap labor.