Nationwide Expansion of PM-SETU (Prime Minister Skill Development and Employability Transformation Scheme) Approved

Government has approved the nationwide expansion of PM-SETU (Prime Minister's Scheme for Skilling, Upgradation and Transformation of ITIs) across all 200 identified Industrial Training Institute (ITI) clusters. The initiative aims to transform ITIs into modern, industry-oriented, and employment-focused training institutions capable of meeting the evolving demands of the economy and preparing a future-ready workforce.The scheme focuses on upgrading ITI infrastructure by establishing modern laboratories, smart classrooms, advanced workshops, and digital learning facilities. Training programmes will be aligned with industry requirements, with special emphasis on emerging technologies such as Artificial Intelligence (AI), robotics, automation, drones, electric vehicles (EVs), renewable energy, advanced manufacturing, and other high-growth sectors.

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¨     The decision was taken at the 4th National Steering Committee (NSC) meeting under the Ministry of Skill Development and Entrepreneurship (MSDE).

¨     PM-SETU has now entered a full-scale national implementation phase, enabling rollout across all 200 identified ITI clusters.

¨     The 4th NSC meeting also approved Strategic Investment Plans (SIPs) worth ₹1,237.58 crore for five ITI clusters—one each in Odisha and Gujarat, and three in Telangana—with participation of Anchor Industry Partners.

¨     States and Union Territories can now proceed with implementation based on industry readiness, cluster preparedness and execution capacity.

¨     Earlier, Andhra Pradesh became the first State to secure approval of a Strategic Investment Plan under PM-SETU, marking the operationalisation of the industry-led ITI transformation model.

About PM-SETU

¨     Pradhan Mantri Skilling and Employability Transformation through Upgraded ITIs (PM-SETU) is a Centrally Sponsored Scheme launched in October 2025 to transform Industrial Training Institutes (ITIs) into modern, industry-aligned skill institutions.

Objectives

¨     Transform ITIs into industry-led, state-of-the-art skill institutions aligned with labour-market needs.

¨     Enhance employability through demand-driven training, modern pedagogy and stronger industry linkages.

¨     Modernise training infrastructure and promote sustainable industry participation in vocational education.

¨     Develop five National Skill Training Institutes (NSTIs) as premier trainer institutions for advanced skilling.

¨     Support the vision of Viksit Bharat 2047 through creation of aspirational skill hubs.

Components of the Scheme

¨     Component I: Upgradation of ITIs

¨     Upgrade 1,000 Government ITIs through an industry-led Hub-and-Spoke model, comprising 200 Hub ITIs and 800 Spoke ITIs.

¨     Component II: Strengthening NSTIs

¨     Capacity augmentation of five National Skill Training Institutes (NSTIs) and development of Centres of Excellence for advanced trainer training and specialised skilling.

¨     Financing Pattern: The Scheme has a total outlay of ₹60,000 crore over five years.

¨     Central Share: ₹30,000 crore; State Share: ₹20,000 crore; Industry Share: ₹10,000 crore

Key Features of the PM-SETU

¨     Industry-Led Governance: Industry participation is institutionalised through Anchor Industry Partners (AIPs) and Special Purpose Vehicles (SPVs) to ensure demand-driven planning, governance and implementation.

¨     Infrastructure and Curriculum Modernisation: The scheme upgrades training infrastructure and introduces new-age, industry-aligned courses to equip learners with skills relevant to emerging technologies and labour-market needs.

¨     Flexible and Innovative Learning: It promotes modular and blended learning, short-term programmes and trainer development to enhance flexibility, innovation and institutional sustainability.

¨     Student-Centric Services: It strengthens employability through apprenticeships, career support, life-skills training and placement-oriented learning opportunities.

Significance of the Scheme

¨     Bridging India’s Skill Gap: PM-SETU seeks to align vocational training with industry requirements, addressing the long-standing mismatch between skills imparted and labour-market demand.

¨     Strengthening Employability: Industry-led governance, updated curricula and practical training are expected to improve workforce readiness and employment outcomes among youth.

¨     Modernising the ITI Ecosystem: The scheme promotes large-scale infrastructure upgradation, governance reforms and technological modernisation across India’s ITI network.

¨     Preparing Workforce for Emerging Technologies: Through new-age courses, modern equipment and industry-aligned training, PM-SETU aims to equip youth with skills relevant to Industry 4.0 and future growth sectors.