Jokes apart, resumes are definitely important as that would be a candidate's first introduction for the prospective employers. As for the internships they need not be unpaid. At least in the medicine field the interns manage to get a respectable amount; all the same it would be worth to do internship from a well reputed place irrespective of the stipend as the experience gained (depending on the motivation and interest level of the candidate) adds to ones confidence in addition to the resume. Theoretical knowledge gained at the university level is quite inadequate in a real setting as many have discovered. One learns a lot of things on the job so getting that break would be crucial and one should make the best of it. The medicine field has the added advantage of various options like research, clinical, teaching, or even setting up your own practice.
Another field where internship plays a crucial role is the legal field. Without good contacts it is often difficult to get into a good firm even for free , that is , without any stipend! People there do not care much for novices who may be rather considered as quite bothersome. But the experience gained or not gained during the semester breaks can make or break you once you are through with the actual course and into the job market. Priority at that time ought to be on learning rather than earning ...this is in context to the Indian scenario where its the parents who usually take care of the children's educational expenses. The situation may be definitely be more difficult where the student has to fund his own education.
The engineering field has it quite tough as far as India is considered. Before choosing one's optional fields it would do well to check the market demand. The Actuarial science is one field which seems to have a bright future with the various insurance cos coming to into the picture . The hospitality industry offers a wide variety of options usually with good exposure.
@ Gumrah... Not to discourage anyone but I am curious about why a person would go for an unregistered or unrecognised grad or post grad course !!! A person usually has some idea about what one would do after completing a 3-5 year course and I guess it would be reasonable to expect them to check the credentials of the course as well as university before dedicating those many years .