India's Industrial Training Institutes (ITIs) have long played an important role in preparing young people for practical, trade-based employment. But as industries adopt automation, artificial intelligence, electric mobility, semiconductor technologies and other emerging technologies, vocational training also needs to evolve.
PM-SETU — Pradhan Mantri Skilling and Employability Transformation through Upgraded ITIs — is designed to address this changing requirement. The initiative focuses on upgrading Government ITIs, strengthening industry participation, improving training infrastructure and introducing courses aligned with emerging workforce needs.
The scheme was launched on 4 October 2025 with a total outlay of ₹60,000 crore. One year into the initiative, implementation has moved from planning and institutional preparation towards ITI identification, cluster development, industry participation and Strategic Investment Plans.
📊 PM-SETU at a Glance
🎯 What is PM-SETU?
PM-SETU is a Government of India initiative aimed at transforming selected Government ITIs into more modern, industry-aligned and employment-oriented training institutions.
Instead of focusing only on physical infrastructure, the initiative brings together several elements — modern laboratories, digital learning, industry participation, new-age courses, better governance, training-of-trainers and stronger links between training and employment.
The broader idea is simple: vocational education should not remain disconnected from the technologies and skills that employers increasingly need.
💰 How is the ₹60,000 Crore Outlay Structured?
The total outlay combines contributions from the Centre, States and industry.
🧩 Two Major Components of PM-SETU
Component I — Government ITIs
Transformation of 1,000 Government ITIs through a Hub-and-Spoke model.
The Hub-and-Spoke structure allows a group of ITIs to share advanced infrastructure, modern trades, digital learning systems and other facilities. Hub ITIs can provide innovation centres, training-of-trainers infrastructure, production units and placement services, while Spoke ITIs can connect learners with resources available within their clusters.
Component II — NSTI Capacity Augmentation
Capacity enhancement of five National Skill Training Institutes.
This component focuses on National Centres of Excellence, advanced training of trainers and international partnerships to strengthen high-level skilling capabilities.
🏗️ Why Modernising ITIs Matters
ITIs provide vocational training in engineering and non-engineering trades through the Craftsmen Training Scheme. Depending on the trade, courses can range from six months to two years.
Government + Private in 2026
Enrolment in 2025–26
ITI network since 2014
ITI enrolment since 2014–15
📈 PM-SETU After One Year: Key Progress
172 Hubs + 678 Spokes
Clusters identified & budget heads created
State Steering Committees constituted
Industry participation process initiated
SIPs approved
Across 14 ITI clusters
🏭 How Industry Participation Works
PM-SETU is not designed as an infrastructure-only programme. Industry participation is built into the governance and implementation structure so that ITI upgrades can respond more closely to regional employment and industrial requirements.
Anchor Industry Partner
Central Government
State Government
Special Purpose Vehicles (SPVs) are proposed for upgraded ITI clusters. They can help drive cluster development and operations, including interventions related to curriculum, training delivery, infrastructure and industry exposure.
📍 14 ITI Clusters with Approved Strategic Investment Plans
| No. | State | Cluster | Anchor Industry Partner | Sector | Value ₹ Cr. |
|---|---|---|---|---|---|
| 1 | AP | Kancharapalem | Arcelor Mittal Nippon Steel India | Steel & Metals | 200 |
| 2 | Odisha | Keonjhar-Barbil | Jindal Naveen Avsar Ltd (JNAL) | Diversified Manufacturing | 240 |
| 3 | Gujarat | Surat | Arcelor Mittal Nippon Steel India | Steel & Metals | 240 |
| 4 | Telangana | Old City | Apollo MedSkills Ltd. | Healthcare & Life Sciences | 241 |
| 5 | Telangana | Sangareddy | Neuland Foundation | Pharmaceuticals & Chemicals | 241 |
| 6 | Telangana | Patancheru | Sri Siddharth Infratech & Services | Diversified Manufacturing | 275 |
| 7 | Rajasthan | Bhiwadi | H.G. Infra Engineering Ltd | Infrastructure & Construction | 241 |
| 8 | UP | Meerut | National Skill Development Corporation (NSDC) | Skill Development | 240 |
| 9 | Telangana | Medchal | ZEN Technologies Ltd | Defence & Electronics | 254 |
| 10 | Haryana | Kurukshetra | Jindal Naveen Avsar Ltd (JNAL) | Diversified Manufacturing | 320 |
| 11 | Maharashtra | Chhatrapati Sambhaji Nagar | Belrise Industries | Automotive Industry | 238 |
| 12 | Maharashtra | Pune | BVG Group | Integrated Facility Management | 241 |
| 13 | Jammu & Kashmir | Srinagar | Inderdeep Infra India Limited | Infrastructure & Construction | 235 |
| 14 | Jammu & Kashmir | Jammu | Eagle Infra India Limited | Infrastructure & Construction | 240 |
| TOTAL | ₹3,446 Cr. | ||||
🚀 New-Age Skills Under PM-SETU
The transformation is also linked with changes in the courses available to learners. The Directorate General of Training has introduced 32 new-age courses under the Craftsmen Training Scheme covering emerging technologies and occupations.
🌍 International Partnerships
PM-SETU also seeks to strengthen advanced skilling through international cooperation. Partnerships are intended to support the capacity of National Centres of Excellence and bring global expertise into advanced training.
NSTI Chennai
NSTI Kanpur
NSTI Bhubaneswar
NSTI Hyderabad
💡 Why PM-SETU Matters for Students
🏫 Better Infrastructure
Modern laboratories, smart learning environments and upgraded training facilities can improve practical exposure.
🏭 Industry Connection
Industry participation can make training more closely connected with actual workplace requirements.
🚀 Future Skills
New-age courses create pathways for students interested in emerging technology areas.
🌍 Global Exposure
International partnerships can support advanced training and exposure to global skilling practices.
⚙️ How PM-SETU Is Being Implemented
States identify ITIs and clusters
Industry participation
Strategic Investment Plan
Cluster implementation
States and Union Territories lead the selection process in consultation with industry. At the national level, a National Steering Committee provides overall direction, monitors implementation and supports course correction where necessary.
🔮 What Could PM-SETU Mean for India's Skill Ecosystem?
The significance of PM-SETU goes beyond upgrading buildings and equipment. Its model attempts to connect training institutions, State Governments, industry and emerging technologies within a coordinated framework.
If implementation continues as planned, the combination of modern infrastructure, industry-led cluster governance and new-age courses can make vocational education more responsive to changing employment requirements.
For students, the larger opportunity is access to training that is increasingly connected with technology, practical work and industry exposure rather than relying only on conventional trade-based learning.
❓ Frequently Asked Questions About PM-SETU
What is the full form of PM-SETU?
PM-SETU stands for Pradhan Mantri Skilling and Employability Transformation through Upgraded ITIs.
When was PM-SETU launched?
PM-SETU was launched on 4 October 2025.
What is the total outlay of PM-SETU?
The scheme has a total outlay of ₹60,000 crore, comprising ₹30,000 crore from the Centre, ₹20,000 crore from States and ₹10,000 crore from industry.
How many Government ITIs are covered under PM-SETU?
The scheme focuses on upgrading 1,000 Government ITIs through a Hub-and-Spoke model consisting of 200 Hub ITIs and 800 Spoke ITIs.
What is the Hub-and-Spoke model in PM-SETU?
Under the model, selected Hub ITIs are connected with Spoke ITIs. The arrangement allows participating institutions to share advanced infrastructure, modern trades, digital learning systems and other resources.
Which NSTIs are covered under Component II?
Component II focuses on NSTIs located at Bhubaneswar, Chennai, Hyderabad, Kanpur and Ludhiana.
How many ITIs had been identified after one year?
After the first year, 850 ITIs had been identified, comprising 172 Hub ITIs and 678 Spoke ITIs.
What new-age skills are covered?
PM-SETU: Building Future-Ready ITIs
PM-SETU represents an effort to modernise India's Government ITIs by combining infrastructure upgrades, industry participation, new-age courses, cluster-based implementation and advanced training. Its first-year progress shows movement from planning towards wider implementation and industry-led investment.
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