India Upgrades ITIs Under PM-SETU Scheme to Strengthen Vocational Training
The Government of India has outlined the upgraded Industrial Training Institute (ITI) – Prime Minister’s Skill Development and Employability Transformation (PM-SETU) scheme, aimed at improving the quality, relevance, and industry alignment of vocational education nationwide. With a total outlay of ₹60,000 crore, the programme focuses on modern infrastructure, updated curricula, and stronger partnerships with industry to address evolving workforce needs.
Funding structure and overall scope
The PM-SETU scheme has a total financial commitment of ₹60,000 crore, shared across stakeholders. The central government contribution stands at ₹30,000 crore, while state governments will provide ₹20,000 crore, and industry partners are expected to contribute ₹10,000 crore. This cost-sharing model is intended to ensure sustained engagement from all parties involved in vocational training delivery.
Component I: Hub-and-spoke model for ITI modernisation
The first component of the scheme involves the upgradation of 1,000 government ITIs through a hub-and-spoke model. This includes 200 hub ITIs and 800 spoke ITIs across the country. Planned improvements cover the introduction of smart classrooms, development of modern laboratories, access to digital learning content, and the launch of new courses aligned with current industry requirements.
The emphasis on digital content and modern pedagogy complements broader national efforts to expand technology-enabled education, including initiatives focused on digitalising educational resources to support equitable access and improved learning outcomes.
Component II: Strengthening national skill training institutes
The second component focuses on capacity enhancement at five National Skill Training Institutes (NSTIs) located in Bhubaneswar, Chennai, Hyderabad, Kanpur, and Ludhiana. Under this component, sector-specific National Centres of Excellence will be established, alongside advanced training programmes for instructors developed through global partnerships.
This approach reflects the growing need for specialised and future-oriented skills, including those required in high-technology sectors such as electronics and semiconductors, which are also being addressed through programmes to support next-generation chip design talent.
Governance, industry participation, and current status
Selection of ITIs under PM-SETU is undertaken by state and union territory governments in consultation with industry partners to ensure alignment with local industrial potential and emerging skill requirements. States and union territories are required to submit proposals for upgradation with industry collaboration.
At the national level, the Ministry of Skill Development and Entrepreneurship (MSDE) has constituted a National Steering Committee, chaired by the Secretary, MSDE, to provide overall policy direction, finalise operational guidelines, monitor progress, and recommend corrective measures where necessary. Correspondingly, 32 states and union territories have established State Steering Committees chaired by their respective Chief Secretaries to oversee implementation.
Fifteen states and union territories have issued proposals inviting expressions of interest from industry. As part of the selection process for industry partners and the formation of Special Purpose Vehicles, industries are required to submit a Strategic Investment Plan in response to a Request for Proposal. The Government of Karnataka has identified two clusters with hub ITIs in the Bengaluru and Kalaburagi districts. As of now, no proposals or Strategic Investment Plans are pending approval before the National Steering Committee.
These details were provided by the Minister of State (Independent Charge) for Skill Development and Entrepreneurship, Jayant Chaudhary, in a written reply to the Lok Sabha, according to an official release from the Press Information Bureau.
