Why in News?

  • PM-SETU completed one year of implementation (launched 4 October 2025).
  • 850 Government ITIs identified and 14 ITI clusters approved under its Hub-and-Spoke model.
  • The National Steering Committee (NSC) has approved the transition from the pilot phase to nationwide rollout across 200 ITI clusters.

About PM-SETU

  • Full form: Pradhan Mantri Skilling and Employability Transformation through Upgraded ITIs.
  • Launched: 4 October 2025.
  • Outlay: ₹60,000 crore — ₹30,000 crore (Centre) + ₹20,000 crore (States) + ₹10,000 crore (Industry).
  • Objective: Modernise Government ITIs and make vocational training industry-aligned and demand-driven.
  • Approach: Industry-led skilling — companies participate in curriculum design, training delivery, infrastructure development and institutional governance.

Hub-and-Spoke Model (Component I)

  • Covers 1,000 Government ITIs — 200 Hub ITIs and 800 Spoke ITIs.
  • Each Hub is connected to an average of four Spoke ITIs.
  • Enables shared access to modern infrastructure, advanced training facilities, digital learning systems and incubation facilities.
  • Hub ITIs: innovation centres, training-of-trainers facilities, production units, placement services.
  • Spoke ITIs: expand access to these resources; upgradation includes smart classrooms, modern laboratories, digital content and industry-aligned courses.

Component II: Strengthening NSTIs

  • Capacity augmentation of five National Skill Training Institutes (NSTIs) at Bhubaneswar, Chennai, Hyderabad, Kanpur and Ludhiana.
  • Includes sector-specific National Centres of Excellence and advanced trainer training through global partnerships.

Governance Architecture

  • State–Industry–Centre Coordination: States/UTs lead the selection of ITIs in consultation with industry and submit upgradation proposals based on emerging skill requirements and regional industrial potential.
  • National Steering Committee (NSC): chaired by the Secretary, MSDE; provides policy direction, finalises guidelines, monitors implementation and undertakes course correction.
  • Special Purpose Vehicles (SPVs): created for upgraded ITI clusters. Proposed ownership — Anchor Industry Partner 51%, Centre 24.5%, State Government 24.5%.
  • Strategic Investment Plan (SIP): mandatory submission by prospective industry partners.

First-Year Implementation Progress

  • 850 Government ITIs identified — 172 Hub ITIs and 678 Spoke ITIs.
  • 36 States/UTs have identified clusters and created dedicated State budget heads.
  • 35 States/UTs have constituted State Steering Committees.
  • 26 States/UTs have initiated inviting industry participation.
  • Industry Investment: 14 SIPs approved covering 8 States and 1 UT, involving ₹3,446 crore across steel, manufacturing, healthcare, pharmaceuticals, infrastructure, automotive and defence electronics.
  • 32 New-Age Courses introduced by the Directorate General of Training (DGT) under the Craftsmen Training Scheme — covering AI, Cyber Security, Additive Manufacturing, EVs, Semiconductor Technology, Robotics, Green Hydrogen, Drones, IoT, Solar Energy and 5G.
  • International Partnerships: MoUs with Singapore (NSTI Chennai), France (NSTI Kanpur) and Australia (NSTI Bhubaneswar); a Joint Declaration of Intent with Germany for NSTI Hyderabad.

ITIs: The Institutional Backbone

  • Industrial Training Institutes (ITIs) provide practical vocational training, equipping youth with employable skills.
  • Craftsmen Training Scheme (CTS): training offered in engineering and non-engineering trades through Government and Private ITIs.
  • Course duration: six months to two years, depending on trade.
  • Apex body: Directorate General of Training (DGT), Ministry of Skill Development and Entrepreneurship (MSDE) — responsible for policy formulation, norms and standards, curriculum development, affiliation, instructor training and trade testing.
  • Administrative control: ITIs function under the State Governments and UT Administrations (administrative and financial control).
  • Network expansion: from 9,776 ITIs (2014) → 13,888 ITIs (2026) — a 42% increase.
  • Enrolment: from 9.51 lakh (2014–15) → 14.70 lakh (2025–26) — a 54% increase.

Significance

  • Marks a paradigm shift from conventional vocational training to a modern, industry-led, technology-oriented skilling ecosystem.
  • Addresses India's skill mismatch by placing industry at the centre of curriculum and governance.
  • Fiscal innovation: blended financing — Centre, States and private industry co-invest, reducing sole dependence on public resources.
  • Federal cooperation: States as lead actors in ITI selection and cluster formation strengthens cooperative federalism.
  • Internationalisation: partnerships with Singapore, France, Australia and Germany upgrade trainer quality and global benchmarking.
  • Demographic dividend: links skills → industry → employment, crucial for Viksit Bharat @2047 and for emerging sectors like semiconductors, EVs, green hydrogen and drones.

Key Concerns to Note

  • Risk of regional imbalance — industry interest may concentrate in industrially developed States.
  • 51% private ownership in SPVs raises questions of accountability and equitable access for weaker students.
  • Trainer availability and quality remain persistent bottlenecks in the ITI ecosystem.
  • Ensuring equity for rural, women and marginalised students as ITIs modernise.

Related Institutional and Policy Framework

  • Ministry of Skill Development and Entrepreneurship (MSDE) — nodal ministry.
  • Directorate General of Training (DGT) — apex vocational training body.
  • National Skill Development Corporation (NSDC) and National Skill Qualification Framework (NSQF) provide the broader skilling architecture.
  • Article 246 and the Union List — vocational training is a subject of both Union and State interest; ITIs are State-controlled while standards are national.

Conclusion

PM-SETU represents a shift from conventional vocational training towards a modern, industry-led and technology-oriented skilling ecosystem. Its Hub-and-Spoke model, industry-led SPVs, Strategic Investment Plans, new-age courses and international partnerships seek to make ITIs more responsive to changing labour-market requirements and support the objective of Viksit Bharat.