PM-SETU: One Year of Transforming India's ITIs
The Pradhan Mantri Skilling and Employability Transformation through Upgraded ITIs (PM-SETU) scheme was launched on 4 October 2025 with 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 participation. The scheme completes one year on 4 October 2026 with significant implementation progress across India's Industrial Training Institute ecosystem.
Scheme Structure and Components
PM-SETU operates through two distinct components. Component I covers 1,000 Government ITIs through a Hub-and-Spoke model, comprising 200 Hub ITIs and 800 Spoke ITIs, with each Hub connected to approximately four Spokes. This model enables shared access to advanced infrastructure, modern trades, digital learning systems, and incubation facilities. Hubs provide innovation centers, training-of-trainers infrastructure, production units, and placement services, while Spokes expand training access and connect learners with cluster resources.
Component II focuses on capacity augmentation of five National Skill Training Institutes (NSTIs) located in Bhubaneswar, Chennai, Hyderabad, Kanpur, and Ludhiana, including setting up sector-specific National Centres of Excellence and advanced trainer training through global partnerships.
Implementation Progress and Funding
Within the first year, 850 ITIs have been identified for upgradation, comprising 172 Hub ITIs and 678 Spoke ITIs. Thirty-six States and Union Territories have identified clusters and created dedicated State budget heads, while 35 have constituted State Steering Committees to guide implementation. Twenty-six States and UTs have initiated the process of inviting industry participation.
The National Steering Committee, chaired by the Secretary of the Ministry of Skill Development and Entrepreneurship, has approved Strategic Investment Plans for 14 ITI clusters with a total investment value of ₹3,446 crore. These approved clusters span eight States and one Union Territory with anchor industry partners from diverse sectors including steel & metals, healthcare, pharmaceuticals, infrastructure, automotive, and skill development.
Industry Participation and Governance
The scheme incorporates industry-led governance through Special Purpose Vehicles with 51% ownership by the Anchor Industry Partner, while the Centre and State Governments hold 24.5% each. Industry participation is built into the selection process through Strategic Investment Plans that consider emerging skill requirements and regional industrial potential.
Curriculum Development and International Partnerships
The Directorate General of Training has introduced 32 new-age courses under the Craftsmen Training Scheme covering emerging technologies including Artificial Intelligence, Cyber Security, Additive Manufacturing, Electric Vehicles, Semiconductor Technology, Robotics, Green Hydrogen, Drones, IoT, Solar Energy, 5G, and Software Testing.
International partnerships have been established to strengthen capacity at National Centres of Excellence, including MoUs with Singapore for NSTI Chennai, France for NSTI Kanpur, Australia for NSTI Bhubaneshwar, and a Joint Declaration of Intent with Germany for NSTI Hyderabad.
Institutional Context
India's ITI network has expanded from 9,776 institutes in 2014 to 13,888 in 2026, representing a 42% increase. Enrollment has grown from 9.51 lakh students in academic session 2014-15 to 14.70 lakh in 2025-26, indicating a 54% increase. ITIs provide vocational training through the Craftsmen Training Scheme with course durations ranging from six months to two years, under the administrative and financial control of State Governments and Union Territory Administrations, with the Directorate General of Training providing national-level coordination.