The Pradhan Mantri Skilling and Employability Transformation through Upgraded ITIs (PM-SETU) scheme is a government initiative designed to enhance the quality and relevance of vocational training in India through infrastructure modernization and industry alignment. The scheme has two primary components: Component I focuses on upgrading 1,000 Government ITIs (200 Hub ITIs and 800 Spoke ITIs) in a Hub and Spoke model with smart classrooms, modern labs, digital content, and new industry-aligned courses. Component II involves capacity augmentation of five National Skill Training Institutes (NSTIs) located in Bhubaneswar, Chennai, Hyderabad, Kanpur, and Ludhiana, including establishing sector-specific National Centres of Excellence for advanced trainer training with global partnerships.

Implementation progress shows 34 States/UTs have constituted State Steering Committees led by Chief Secretaries to oversee scheme implementation. Twenty-three States/UTs have floated proposals for industry interest, with 822 ITIs already identified for upgradation comprising 166 Hubs and 656 Spokes across all states and union territories. The National Steering Committee has approved six Strategic Investment Plans from Anchor Industry Partners, including three from Telangana, one each from Andhra Pradesh, Odisha, and Gujarat. These approved clusters cover specific ITIs in Visakhapatnam, Keonjhar-Barbil, Surat, and three clusters in Telangana (Old City, Patancheru, and Sangareddy).

Industry-led Special Purpose Vehicles will drive the upgradation process, proposing interventions in curriculum redesign, training delivery models, infrastructure upgradation, industry exposure, and placement facilitation. The Directorate General of Training has introduced 32 new age courses under the Craftsmen Training Scheme, covering emerging technologies including Additive Manufacturing (3D Printing), Artificial Intelligence Programming, Cyber Security, Drone Technology, Electric Vehicles, Semiconductor Technology, 5G Networks, and Green Hydrogen Production.

To strengthen industry participation, the Ministry of Skill Development and Entrepreneurship has conducted multiple workshops and regional consultations in Aizawl, Bhopal, Chandigarh, Chennai, Hyderabad, Kanpur, Mumbai, and Pune under the leadership of the Minister of State and Secretary. Additionally, ₹5.60 crore has been disbursed to States and UTs for industry sensitization activities, including outreach programs and stakeholder consultations to enable wider industry mobilization nationwide.