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

The Pradhan Mantri Skilling and Employability Transformation through Upgraded ITIs (PM-SETU) scheme, launched on 4 October 2025 with a total outlay of ₹60,000 crore, has completed its first year of operation. The scheme represents a comprehensive transformation of India's vocational training ecosystem, with ₹30,000 crore from the Centre, ₹20,000 crore from States, and ₹10,000 crore from industry participation.

Scheme Structure and Components

PM-SETU operates through two distinct components. Component I focuses on upgrading 1,000 Government ITIs through a Hub-and-Spoke model, comprising 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 through sector-specific National Centres of Excellence and advanced trainer training via global partnerships.

Implementation Progress and Governance

Within the first year, 850 ITIs have been identified (172 Hub ITIs and 678 Spoke ITIs) across 36 States and Union Territories that have created dedicated budget heads. Thirty-five States and UTs have constituted State Steering Committees to guide implementation, while 26 have initiated industry participation processes. The National Steering Committee, chaired by the Secretary of the Ministry of Skill Development and Entrepreneurship (MSDE), has approved the transition from pilot phase to nationwide rollout across all 200 identified ITI clusters.

Industry Participation and Investment

The scheme incorporates industry-led governance through Special Purpose Vehicles (SPVs) with 51% ownership by Anchor Industry Partners, while Centre and State Governments hold 24.5% each. Fourteen Strategic Investment Plans (SIPs) for ITI clusters have been approved with total investment of ₹3,446 crore across eight States and one Union Territory. Major approved projects include:

  • Arcelor Mittal Nippon Steel India: ₹200 crore in Andhra Pradesh (Steel & Metals) and ₹240 crore in Gujarat (Steel & Metals)
  • Jindal Naveen Avsar Ltd: ₹240 crore in Odisha and ₹320 crore in Haryana (Diversified Manufacturing)
  • Apollo MedSkills Ltd.: ₹241 crore in Telangana (Healthcare & Life Sciences)
  • H.G. Infra Engineering Ltd.: ₹241 crore in Rajasthan (Infrastructure & Construction)
  • NSDC: ₹240 crore in Uttar Pradesh (Skill Development)

Curriculum Expansion 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 through MoUs with Singapore (NSTI Chennai), France (NSTI Kanpur), Australia (NSTI Bhubaneshwar), and a Joint Declaration of Intent with Germany (NSTI Hyderabad).

Broader Context and Institutional Growth

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 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 UT Administrations, with the Directorate General of Training serving as the national apex organization for policy, norms, curriculum development, and standards.