India’s Industrial Training Institutes (ITIs) are undergoing a planned transformation aimed at improving infrastructure, industry alignment and the relevance of vocational training as workforce requirements evolve.
The Pradhan Mantri Skilling and Employability Transformation through Upgraded ITIs (PM-SETU) was launched on October 4, 2025, with a total outlay of ₹60,000 crore. The scheme completes one year on October 4, 2026.
The funding comprises ₹30,000 crore from the Centre, ₹20,000 crore from States and ₹10,000 crore from industry.
ITI network expands
The number of Government and Private ITIs has increased from 9,776 in 2014 to 13,888 in 2026, a 42% increase.
Enrolment has risen from 9.51 lakh in 2014-15 to 14.70 lakh in 2025-26, representing a 54% increase.
Under the Craftsmen Training Scheme, ITIs offer six-month to two-year vocational courses across engineering and non-engineering trades. The Directorate General of Training under the Ministry of Skill Development and Entrepreneurship is responsible for national-level policy, standards, curriculum development, affiliation, instructor training and trade testing.
Hub-and-Spoke model
PM-SETU’s first component covers 1,000 Government ITIs, comprising 200 Hub ITIs and 800 Spoke ITIs.
The Hub-and-Spoke model is designed to enable clusters of institutions to share advanced infrastructure, digital learning systems, modern trades and incubation facilities. Hubs are being equipped with facilities including innovation centres, training-of-trainers infrastructure, production units and placement services.
The scheme also envisages smart classrooms, modern laboratories, digital content and industry-aligned courses.
Five NSTIs to get capacity boost
The second component focuses on capacity augmentation at five National Skill Training Institutes (NSTIs) in Bhubaneswar, Chennai, Hyderabad, Kanpur and Ludhiana.
It includes setting up sector-specific National Centres of Excellence and advanced training of trainers through global partnerships.
Industry gets role in governance
States and Union Territories are responsible for selecting ITIs under PM-SETU in consultation with industry and submitting upgradation proposals with industry partners.
At the national level, a National Steering Committee chaired by the Secretary, MSDE, provides policy direction, finalises operational guidelines, monitors implementation and undertakes course corrections.
Industry participation is also incorporated through Strategic Investment Plans (SIPs).
The scheme provides for industry-led governance through Special Purpose Vehicles for upgraded ITI clusters. The proposed ownership structure gives 51% to the Anchor Industry Partner and 24.5% each to the Centre and State Governments.
850 ITIs identified in first year
During its first year, PM-SETU has moved from institutional preparation and ITI identification towards cluster and investment approvals.
A total of 850 ITIs have been identified, comprising 172 Hub ITIs and 678 Spoke ITIs. All 36 States and Union Territories have identified clusters and created dedicated State budget heads, while 35 have constituted State Steering Committees.
Twenty-six States and Union Territories have initiated the process of inviting industry participation.
The National Steering Committee has approved the transition of PM-SETU from its pilot phase to a nationwide rollout across all 200 identified ITI clusters.
SIPs for 14 ITI clusters have also been approved, involving an investment of ₹3,446 crore.
The first year of PM-SETU has therefore established the institutional framework for upgrading ITIs, with implementation now moving towards cluster-level execution, industry participation and infrastructure investment.