PM-SETU: One Year of Transforming India's ITIs

The Pradhan Mantri Skilling and Employability Transformation through Upgraded ITIs (PM-SETU) scheme completes one year on 4 October 2026, marking significant progress in transforming India's vocational training ecosystem. Launched on 4 October 2025 with a total outlay of ₹60,000 crore, the scheme comprises ₹30,000 crore from the Centre, ₹20,000 crore from States, and ₹10,000 crore from industry participation.

Scheme Structure and Implementation

PM-SETU operates through two distinct components. Component I covers 1,000 Government ITIs using a Hub-and-Spoke model, with 200 Hub ITIs and 800 Spoke ITIs. Each Hub connects with approximately four Spokes, enabling 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. This includes establishing sector-specific National Centres of Excellence and advanced trainer training through global partnerships.

Governance and Industry Participation

The scheme features a multi-level governance structure. At the national level, the Ministry of Skill Development and Entrepreneurship (MSDE) has constituted a National Steering Committee (NSC) chaired by the Secretary, MSDE, to provide overall direction. States and Union Territories lead ITI selection in consultation with industry partners and submit proposals considering emerging skill requirements and regional industrial potential.

Industry participation is structured through Strategic Investment Plans (SIPs) and Special Purpose Vehicles (SPVs) with 51% ownership by Anchor Industry Partners, while Centre and State Governments hold 24.5% each. These SPVs lead cluster development and operations with interventions tailored to local industry requirements.

One-Year Progress Achievements

Within the first year, implementation has progressed significantly with 850 ITIs identified (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. Twenty-six States and UTs have initiated the process of inviting industry participation.

The NSC has approved the transition from pilot phase to nationwide rollout across all 200 identified ITI clusters, enabling implementation based on industry readiness and capacity.

Approved Investments and Clusters

Fourteen SIPs across 8 States and 1 Union Territory have been approved with a total investment of ₹3,446 crore. The approved clusters include:

  • Andhra Pradesh: Kancharapalem cluster with Arcelor Mittal Nippon Steel India (Steel & Metals, ₹200 crore)
  • Odisha: Keonjhar-Barbil cluster with Jindal Naveen Avsar Ltd (Diversified Manufacturing, ₹240 crore)
  • Gujarat: Surat cluster with Arcelor Mittal Nippon Steel India (Steel & Metals, ₹240 crore)
  • Telangana: Multiple clusters including Old City (Apollo MedSkills, Healthcare, ₹241 crore), Sangareddy (Neuland Foundation, Pharmaceuticals, ₹241 crore), Patancheru (Sri Siddharth Infratech, Diversified Manufacturing, ₹275 crore), and Medchal (ZEN Technologies, Defence & Electronics, ₹254 crore)
  • Rajasthan: Bhiwadi cluster with H.G. Infra Engineering (Infrastructure & Construction, ₹241 crore)
  • Uttar Pradesh: Meerut cluster with NSDC (Skill Development, ₹240 crore)
  • Haryana: Kurukshetra cluster with Jindal Naveen Avsar Ltd (Diversified Manufacturing, ₹320 crore)
  • Maharashtra: Chhatrapati Sambhaji Nagar cluster with Belrise Industries (Automotive, ₹238 crore) and Pune cluster with BVG Group (Integrated Facility Management, ₹241 crore)
  • Jammu & Kashmir: Srinagar cluster with Inderdeep Infra India (Infrastructure, ₹235 crore) and Jammu cluster with Eagle Infra India (Infrastructure, ₹240 crore)

Curriculum and International Partnerships

The Directorate General of Training has introduced 32 new-age courses 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 for advanced skilling: Singapore for NSTI Chennai, France for NSTI Kanpur, Australia for NSTI Bhubaneshwar, and a Joint Declaration of Intent with Germany for NSTI Hyderabad.

Background Context

India's ITI network has expanded significantly from 9,776 institutes in 2014 to 13,888 in 2026 (42% increase), with enrollment growing from 9.51 lakh in 2014-15 to 14.70 lakh in 2025-26 (54% increase). ITIs provide vocational training under the Craftsmen Training Scheme with course durations ranging from six months to two years, administered by State Governments and Union Territory Administrations under the national coordination of the Directorate General of Training.