The Pradhan Mantri Skilling and Employability Transformation through Upgraded ITIs (PM-SETU) has completed one year, with the government focusing on modernising Industrial Training Institutes, strengthening industry participation and aligning vocational training with emerging workforce requirements.
Launched on October 4, 2025, PM-SETU aims to transform government ITIs into modern, industry-aligned training institutions. 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 is being implemented through two key components. The first focuses on upgrading 1,000 government ITIs through a Hub-and-Spoke model, comprising 200 Hub ITIs and 800 Spoke ITIs. The second component focuses on augmenting the capacity of five National Skill Training Institutes (NSTIs) through National Centres of Excellence and advanced training of trainers.
Under the Hub-and-Spoke model, each Hub ITI is connected with an average of four Spoke ITIs. The model enables institutions to share advanced infrastructure, modern trades, digital learning systems and incubation facilities.
The upgraded Hub ITIs are expected to provide facilities including innovation centres, training-of-trainers infrastructure, production units and placement services, while Spoke ITIs will expand access to training and resources available within their respective clusters.
Progress in the First Year
During the first year, 850 ITIs have been identified, comprising 172 Hub ITIs and 678 Spoke ITIs. As many as 36 States and Union Territories have identified clusters and created dedicated State budget heads, while 35 States and Union Territories have constituted State Steering Committees.
Meanwhile, 26 States and Union Territories have initiated the process of inviting industry participation.
The National Steering Committee has approved the transition of PM-SETU from its pilot phase to a nationwide rollout across all 200 identified ITI clusters.
Strategic Investment Plans for 14 ITI clusters across eight States and one Union Territory have also been approved, involving an investment of ₹3,446 crore.
The approved clusters cover sectors ranging from steel and metals, healthcare and pharmaceuticals to infrastructure, defence and electronics, automotive and diversified manufacturing.
Industry Participation at the Core
PM-SETU incorporates industry participation through Strategic Investment Plans, Special Purpose Vehicles and Anchor Industry Partners.
The proposed SPV structure gives 51 per cent ownership to the Anchor Industry Partner, while the Centre and State Governments hold 24.5 per cent each. The SPVs will oversee cluster development and operations and propose interventions based on local industry requirements, including curriculum, training delivery, infrastructure and industry exposure.
Focus on New-Age Skills
The initiative also seeks to ensure that vocational training keeps pace with emerging technologies.
The Directorate General of Training has introduced 32 new-age courses under the Craftsmen Training Scheme. These cover areas including Artificial Intelligence, Cyber Security, Additive Manufacturing, Electric Vehicles, Semiconductor Technology, Robotics, Green Hydrogen, Drones, Internet of Things, Solar Energy, 5G and Software Testing.
States can adopt these courses in their ITIs, which remain under the administrative and financial control of State Governments and Union Territory Administrations.
International Partnerships
PM-SETU also provides for international partnerships to strengthen advanced skilling and align training with global standards.
MoUs have been signed with Singapore for NSTI Chennai, France for NSTI Kanpur and Australia for NSTI Bhubaneswar. A Joint Declaration of Intent has also been exchanged with Germany for NSTI Hyderabad.
Expanding India’s ITI Network
The PM-SETU initiative builds on an expanding vocational training network in the country.
The number of ITIs, including government and private institutions, increased from 9,776 in 2014 to 13,888 in 2026, an increase of 42 per cent. Enrolment also rose from 9.51 lakh in the 2014-15 academic session to 14.70 lakh in 2025-26, registering a 54 per cent increase.
The government says PM-SETU is aimed at strengthening this network by combining modern infrastructure, industry participation and demand-driven training.
The initiative is expected to bring ITIs and NSTIs closer to evolving workforce requirements while expanding access to new-age skills, international expertise and industry exposure for India’s youth.
-PIB
