Browse
Log in / Register
Share
New Delhi — On the first anniversary of the Pradhan Mantri Skilling and Employability Transformation through Upgraded ITIs (PM-SETU), officials have confirmed that the initiative has already identified 850 Industrial Training Institutes across India and approved 14 ITI clusters. The announcement, based on an official factsheet shared over the weekend, shows that 172 of the identified institutes will serve as Hub ITIs while 678 will operate as Spoke ITIs.
The program, launched to modernize India’s vocational training ecosystem, is built around a Hub-and-Spoke model designed to upgrade 1,000 government ITIs. In addition, five National Skill Training Institutes (NSTIs) are being strengthened as National Centres of Excellence. According to the government, planned skill labs in these institutes will extend practical vocational exposure to students beyond traditional classroom instruction.
State participation has been a key feature of the rollout. So far, 36 states and union territories have identified clusters and set up dedicated budget heads for the program. Thirty-five states and union territories have also constituted state steering committees to oversee implementation, while 26 states and union territories have started the process of inviting industry participation.
The financial architecture of PM-SETU is substantial. The total outlay is Rs 60,000 crore, with Rs 30,000 crore from the central government, Rs 20,000 crore from state governments, and Rs 10,000 crore expected from industry contributions. This three-way funding structure is intended to make the program a shared responsibility between public institutions and private employers, rather than a purely government-driven effort.
Officials said industry involvement will be channeled through Strategic Investment Plans, Special Purpose Vehicles, and Anchor Industry Partners. These mechanisms are meant to ensure that curriculum design and training delivery align with real market demand. In practice, that could mean companies have a direct say in what skills are taught, how equipment is chosen, and how students are assessed.
The scale of the broader ITI network has also expanded sharply. Government and private ITIs combined increased from 9,776 in 2014 to 13,888 in 2026, a rise of 42 percent. Enrollment across ITIs has climbed from 9.51 lakh in the academic session 2014–15 to 14.70 lakh in 2025–26, representing a 54 percent jump. These numbers suggest that demand for vocational training in India is growing even as the government pushes to improve quality.
One of the most closely watched aspects of PM-SETU is the introduction of new-age courses. The Directorate General of Training (DGT) has brought in 32 courses under the Craftsmen Training Scheme, including fields such as artificial intelligence, cyber security, additive manufacturing, electric vehicles, semiconductor technology, robotics, green hydrogen, drones, IoT, solar energy, 5G, and software testing. States are free to adopt these courses within their own ITIs, which remain under state administrative and financial control.
This move is significant for the broader skill development landscape. Until recently, many government ITIs primarily offered traditional trades in mechanical, electrical, and civil engineering. By adding emerging technology programs, the government is attempting to close the gap between vocational education and the skills demanded by new-age industries. International partnerships are also being used to support advanced training at selected NSTIs, giving some institutions access to global best practices.
For international observers and US-based companies with operations in India, the development is worth watching. India’s push to modernize vocational training is likely to affect the talent pool available to multinational companies in manufacturing, IT services, and clean energy. The emphasis on electric vehicles, semiconductors, and green hydrogen, in particular, reflects sectors where global supply chains are increasingly looking to India as a manufacturing and engineering partner.
Industry analysts note that the Hub-and-Spoke structure is a practical response to India’s uneven distribution of training infrastructure. Instead of trying to upgrade every institute at once, the model concentrates investment in a smaller number of hubs that can serve as resource centers for surrounding spoke institutes. This approach can reduce costs while expanding quality across a wider area.
Another notable feature of PM-SETU is its attempt to introduce industry-led governance. By involving State Steering Committees and anchor industry partners in the decision-making process, the government is moving away from a purely administrative model of vocational training. The expectation is that employers will be more likely to hire graduates if they have been involved in shaping the curriculum and providing hands-on training opportunities.
The program is also aligned with the national push for demand-driven courses. Policy scholars have pointed out that India’s demographic dividend can only be realized if education and skilling programs respond quickly to labor market signals. PM-SETU’s focus on emerging technologies is an acknowledgment that traditional trade certificates are no longer sufficient for many employment pathways.
Still, implementation challenges remain. The success of the program depends on how effectively states coordinate with the center, how quickly industry partners commit funding, and whether training infrastructure can be upgraded without disrupting existing academic schedules. The official factsheet acknowledges that states are at different stages of implementation, with 36 states having moved on clusters and budget heads but only 26 having begun industry outreach.
What PM-SETU means for India’s overall skilling mission is still taking shape. The first-year numbers provide a baseline for measuring progress. With 850 ITIs identified, 14 clusters approved, and 32 new-age courses introduced, the program has moved from policy design to field-level execution. What remains to be seen is how effectively these institutional changes translate into better employment outcomes for students.
For now, the government is presenting PM-SETU as a structural upgrade of India’s vocational education system. The expansion from roughly 9,800 ITIs in 2014 to nearly 13,900 by 2026 is evidence of scale. The more important test, however, will be whether graduates of these upgraded institutes are seen as more employable by companies in India and abroad.
As India continues to position itself as a global skills provider, the progress of PM-SETU is likely to be closely monitored by policymakers and investors alike. The initiative’s ability to deliver on its funding commitments and industry integration will be central to its long-term impact. For now, the first-year results show a program that is neither stalled nor fully mature, but one that has established a workable framework and is beginning to show measurable results.
The factsheet also underscores the growing emphasis on collaboration between government, states, and industry. That shift is not unique to India, but the scale of PM-SETU makes it one of the most ambitious vocational training overhauls in the region. If the next phases of implementation proceed as planned, PM-SETU could serve as a reference point for other countries trying to modernize technical education.
The coming months will be critical as more states formalize steering committees and begin receiving industry funds. The pace at which the remaining ITIs are upgraded, and the eventual impact on student employment rates, will determine whether the program is seen as a success. For now, the first-anniversary data confirms that PM-SETU is active, expanding, and increasingly embedded in India’s skills landscape.
