PM-SETU Scheme: Upgrading ITIs for Industry Needs

#GS-2 #GS-3 #Governance & Social Justice #Economy #Employment #Government Policies & Interventions #Education

Key takeaways

The PM-SETU scheme launched on 4th October 2025 with a Rs 60,000 crore budget to modernize 1,000 Government ITIs.
The project uses a Hub-and-Spoke setup connecting 200 Hub ITIs with 800 Spoke ITIs to share practical machinery and digital labs.
Private industry partners hold a controlling 51% share in cluster Special Purpose Vehicles, while the Center and State Governments hold 24.5% each.
The Directorate General of Training (DGT) introduced 32 new-age courses in advanced areas like AI, Cyber Security, Semiconductors, and Drones.
Total ITI student admissions grew 54% from 9.51 lakh in 2014-15 to 14.70 lakh in 2025-26 across 13,888 institutions.

The PM-SETU scheme completed its first year of operations recently.
Officials have selected 850 Industrial Training Institutes (ITIs) and approved 14 ITI clusters under the scheme's Hub-and-Spoke model.

The central government launched PM-SETU on 4th October 2025 to upgrade government ITIs and match their training with market demand.
The total budget for this vocational education upgrade project is Rs 60,000 crore.
Businesses actively participate in designing courses, delivering classes, building workshops, and managing these centers.
Under Component I, the Hub-and-Spoke model links 1,000 Government ITIs, consisting of 200 Hub ITIs and 800 Spoke ITIs.
Each central Hub connects to about four Spoke ITIs, giving smaller centers shared access to advanced machines, labs, and incubation facilities.
Hub ITIs feature innovation centers, teacher training facilities, production units, and job placement cells.
Under Component II, the government expands five National Skill Training Institutes (NSTIs) in Bhubaneswar, Chennai, Hyderabad, Kanpur, and Ludhiana.
State governments select participating ITIs alongside industry partners and propose plans based on local factory needs.
The National Steering Committee (NSC), led by the Secretary of MSDE, directs policy decisions and monitors performance across the country.
Upgraded ITI clusters operate through Special Purpose Vehicles (SPVs), where the Anchor Industry Partner holds a 51% stake while the Center and State Governments hold 24.5% each.
Participating companies must present a Strategic Investment Plan (SIP) to guide regional training and infrastructure.

During its first year, the scheme identified 850 government centers, including 172 Hub ITIs and 678 Spoke ITIs.
The National Steering Committee approved scaling up the initiative from pilot projects to 200 ITI clusters across India.
The government approved 14 Strategic Investment Plans (SIPs) worth Rs 3,446 crore across 8 States and 1 UT.
These industrial investments cover key sectors like steel, healthcare, pharmaceuticals, manufacturing, defense electronics, and cars.
The Directorate General of Training (DGT) launched 32 new-age courses covering AI, Cyber Security, Semiconductors, Drones, Green Hydrogen, and 5G.
India signed global agreements with Singapore, France, Australia, and Germany to improve teaching standards at NSTI centers.

ITIs offer hands-on trade training in engineering and non-engineering fields under the Craftsmen Training Scheme (CTS).
Students can choose practical skill courses lasting between six months to two years.
The Directorate General of Training (DGT) under the Ministry of Skill Development and Entrepreneurship (MSDE) sets curriculum standards and trade testing nationally.
Individual State Governments and Union Territory Administrations handle the daily operational and financial management of ITIs.
The total count of active ITIs grew from 9,776 in 2014 to 13,888 in 2026, marking a 42% expansion.
Student admissions jumped by 54%, growing from 9.51 lakh in 2014-15 to 14.70 lakh in 2025-26.

PM-SETU shifts traditional vocational education toward a modern, factory-ready, and technology-focused system.
Connecting practical learning directly with factory demand builds stronger human capital to support the Viksit Bharat mission.