PM-SETU focuses on upgrading Government 1000 ITIs through a Hub-and-Spoke model and industry-aligned training. The scheme also provides for capacity augmentation of five NSTIs through National Centres of Excellence. Industry participation is incorporated through Strategic Investment Plans, Special Purpose Vehicles and Anchor Industry Partners. The scheme introduces new-age courses covering emerging technologies and occupations. International partnerships support advanced skilling at selected NSTIs. The initiative has also expanded implementation across States and Union Territories through State Steering Committees and industry participation. Its one-year progress includes the identification of 850 ITIs and approval of 14 ITI clusters. Planned skill labs further extend vocational exposure to students.
Transforming ITIs for a Skilled Workforce
India’s Industrial Training Institutes (ITIs) form an important part of the country’s vocational training ecosystem, providing youth with practical skills for employment and industry. As workforce requirements evolve, strengthening the quality, relevance and industry orientation of vocational training has become increasingly important.
Against this backdrop, PM-SETU (Pradhan Mantri Skilling and Employability Transformation through Upgraded ITIs) was launched on 4 October 2025. The scheme enhances the overall quality and relevance of vocational training by transforming Government ITIs into modern, industry-aligned training institutions. The initiative seeks to strengthen industry-led governance, upgrade training infrastructure and promote demand-driven courses in line with evolving workforce requirements. The scheme has a total outlay of ₹60,000 crore, comprising ₹30,000 crore from the Centre, ₹20,000 crore from States and ₹10,000 crore from industry. The scheme completes one year on 4 October 2026.
ITIs: Building the Foundation for a Skilled Workforce
ITIs provide vocational training to equip youth with practical skills for employment and industry. Under the Craftsmen Training Scheme (CTS), training is offered through Government and Private Industrial Training Institutes in engineering and non-engineering trades. Course duration varies from six months to two years, depending on the trade. The Directorate General of Training (DGT), Ministry of Skill Development and Entrepreneurship (MSDE), is the apex organisation responsible for the development and coordination of vocational training at the national level. The functions include framing policies, norms and standards, curriculum development, affiliation, instructor training and trade testing. ITIs are under the administrative and financial control of State Governments and Union Territory Administrations.
The total number of ITIs, including Government and Private, in the country has increased from 9,776 in 2014 to 13,888 in 2026, indicating an increase of 42%. Further, enrolment in ITIs across the country has increased from 9.51 lakh in the academic session 2014–15 to 14.70 lakh in the academic session 2025–26, indicating an increase of 54%.
This expanding network provides a broad institutional base for strengthening vocational training and aligning it with evolving skill requirements across sectors.
How PM-SETU is Transforming ITIs
PM-SETU brings together infrastructure modernisation, industry participation, and new-age training to strengthen vocational education quality. The transformation is anchored in two distinct components, with the first focused on Government ITIs and the second on NSTIs.
Component I covers 1,000 Government ITIs, comprising 200 Hub ITIs and 800 Spoke ITIs. These institutions are being upgraded through a Hub-and-Spoke model with modern infrastructure and industry-aligned training. Each Hub is connected with four Spokes on average, enabling shared access to advanced infrastructure, modern trades, digital learning systems and incubation facilities.
Hubs provide facilities such as innovation centres, training-of-trainers infrastructure, production units and placement services. Spokes expand access to training and connect learners with the resources available within their respective clusters.
This model is helping in upgradation of ITIs with smart classrooms, modern laboratories, digital content and industry-aligned courses.
Component II focuses on the capacity augmentation of 5 National Skill Training Institutes (NSTIs) located in Bhubaneswar, Chennai, Hyderabad, Kanpur and Ludhiana. It includes setting-up sector-specific National Centres of Excellence and advanced training of trainers through global partnerships.
Implementing PM-SETU: State, Industry and Central Coordination
The respective States and Union Territories lead the selection of ITIs under PM-SETU in consultation with industry. They submit proposals for ITI upgradation in collaboration with industry partners. This process considers emerging skill requirements and the industrial potential of the respective regions.
At the national level, the MSDE has constituted a National Steering Committee (NSC), chaired by the Secretary, MSDE, to provide overall direction for the scheme. The NSC facilitates broad policy direction, finalises operational guidelines, monitors implementation and undertakes course correction where required.
Industry participation is also built into the selection process, with prospective partners required to submit a Strategic Investment Plan (SIP).
Industry-Led Governance through SPVs
PM-SETU provides for industry-led governance through SPVs for upgraded ITI clusters. The proposed structure provides 51% ownership to the Anchor Industry Partner, while the Centre and State Governments hold 24.5% each.
The SPVs lead cluster development and operations while proposing interventions suited to local industry requirements. These interventions may cover curriculum, training delivery, infrastructure and industry exposure.
PM-SETU at One Year: From Planning to Implementation
Within the first year of PM-SETU, implementation has progressed from institutional preparation and ITI identification to the approval of ITI clusters and SIPs. A total of 850 ITIs have been identified, comprising 172 Hub ITIs and 678 Spoke ITIs. 36 States and Union Territories have identified clusters and created dedicated State budget heads. Meanwhile, 35 States and Union Territories have constituted their State Steering Committees to guide and oversee implementation. 26 States and Union Territories have also initiated the process of inviting industry participation.
The NSC has also approved the transition of PM-SETU from its pilot phase to a nationwide rollout across all 200 identified ITI clusters. The rollout enables States and Union Territories to take up implementation based on industry readiness and implementation capacity.
Approval has been given to SIPs for 14 ITI clusters under PM-SETU with an investment of ₹3446 crore.
14 SIPs Across 8 States and 1 UT Approved by National Steering Committee
The National Steering Committee has approved 14 Strategic Investment Plans across 8 States and 1 Union Territory. In Andhra Pradesh, the Kancharapalem cluster has been approved with Arcelor Mittal Nippon Steel India as the Anchor Industry Partner in the Steel and Metals sector, with a value of ₹200 crore. In Odisha, the Keonjhar-Barbil cluster has been approved with Jindal Naveen Avsar Ltd as the Anchor Industry Partner in Diversified Manufacturing, valued at ₹240 crore. In Gujarat, the Surat cluster has been approved with Arcelor Mittal Nippon Steel India as the Anchor Industry Partner in Steel and Metals, valued at ₹240 crore.
In Telangana, three clusters have been approved. The Old City cluster has Apollo MedSkills Ltd as the Anchor Industry Partner in Healthcare and Life Sciences, valued at ₹241 crore. The Sangareddy cluster has Neuland Foundation as the Anchor Industry Partner in Pharmaceuticals and Chemicals, valued at ₹241 crore. The Patancheru cluster has Sri Siddharth Infratech and Services as the Anchor Industry Partner in Diversified Manufacturing, valued at ₹275 crore. Also in Telangana, the Medchal cluster has ZEN Technologies Ltd as the Anchor Industry Partner in Defence and Electronics, valued at ₹254 crore.
In Rajasthan, the Bhiwadi cluster has H.G. Infra Engineering Ltd as the Anchor Industry Partner in Infrastructure and Construction, valued at ₹241 crore. In Uttar Pradesh, the Meerut cluster has the National Skill Development Corporation as the Anchor Industry Partner in Skill Development, valued at ₹240 crore. In Haryana, the Kurukshetra cluster has Jindal Naveen Avsar Ltd as the Anchor Industry Partner in Diversified Manufacturing, valued at ₹320 crore.
In Maharashtra, two clusters have been approved. The Chhatrapati Sambhaji Nagar cluster has Belrise Industries as the Anchor Industry Partner in the Automotive Industry, valued at ₹238 crore. The Pune cluster has BVG Group as the Anchor Industry Partner in Integrated Facility Management, valued at ₹241 crore. In Jammu and Kashmir, two clusters have been approved. The Srinagar cluster has Inderdeep Infra India Limited as the Anchor Industry Partner in Infrastructure and Construction, valued at ₹235 crore. The Jammu cluster has Eagle Infra India Limited as the Anchor Industry Partner in Infrastructure and Construction, valued at ₹240 crore. The total value of all 14 approved SIPs is ₹3,446 crore.
EXPANDING THE SCOPE OF SKILLING
New-Age Courses for Emerging Workforce Requirements
To complement infrastructure and institutional reforms, PM-SETU also focuses on making vocational training responsive to emerging technologies and occupations. The Directorate General of Training (DGT) has introduced 32 new-age courses under the Craftsmen Training Scheme, covering areas such as Artificial Intelligence, Cyber Security, Additive Manufacturing, Electric Vehicles, Semiconductor Technology, Robotics, Green Hydrogen, Drones, IoT, Solar Energy, 5G and Software Testing. States can adopt these courses in their ITIs, which are under their administrative and financial control.
International Partnerships for Advanced Skilling
The PM-SETU framework also provides for international partnerships to strengthen the capacity of National Centres of Excellence for Skilling and align training with global standards. An MoU has been signed with Singapore for NSTI Chennai, France for NSTI Kanpur, Australia for NSTI Bhubaneshwar and a Joint Declaration of Intent has been exchanged with Germany for NSTI Hyderabad.
Strengthening the Pathway from Skills to Employment
PM-SETU is strengthening India’s vocational training ecosystem through modern infrastructure, industry participation and demand-driven training. Its implementation is bringing Government ITIs and NSTIs closer to evolving workforce requirements. The initiative is also expanding access to new-age skills, international expertise and early vocational exposure. Together, these measures are supporting a more connected and industry-responsive skilling pathway for India’s youth.
