Key Facts and Data Points

  • Scheme name: Pradhan Mantri Skilling and Employability through Upgraded ITIs (PM‑SETU)
  • Approved: Union Cabinet, 2025
  • Budget: Rs 60,000 crore
  • Implementing Ministry: Ministry of Skill Development and Entrepreneurship (MSDE)
  • Governance: National Steering Committee (NSC) as apex body
  • Model: Hub‑and‑Spoke – 200 Hub ITIs each mentoring ~4 Spoke ITIs
  • National Skill Training Institutes (NSTIs) upgraded: 5 (Bhubaneswar, Chennai, Hyderabad, Kanpur, Ludhiana) – to become Centres of Excellence
  • SPV Ownership: Industry 51 %, Government 49 %
  • Funding to SPVs: Up to 83 % of project cost from government
  • Industry participation: Anchor Industry Partners (AIPs) invited via Expression of Interest (EOI)
  • Curriculum update: 31 new‑age courses under Craftsmen Training Scheme (CTS)
  • Target sectors: Advanced manufacturing, electronics, mobility, logistics

Background and Context

  • India faces a skill gap of over 10 million jobs annually (World Economic Forum, 2024). Existing ITIs lack modern infrastructure and industry‑relevant curricula.
  • Earlier skill programmes were government‑centric, leading to low placement rates. PM‑SETU marks a shift to industry‑led skilling, ensuring curricula, equipment, and training methods match current market needs.
  • The hub‑and‑spoke approach leverages economies of scale: well‑equipped hubs provide shared resources, faculty, and digital platforms to surrounding spokes.

Significance for India / Governance / Policy

  • Employment Generation: Aligns training with sectors projected to create 12 million jobs by 2030.
  • Make in India & Atmanirbhar Bharat: Provides a skilled workforce for domestic manufacturing and export‑oriented units.
  • Public‑Private Partnership (PPP) Model: SPVs institutionalise industry participation, fostering accountability and sustainability.
  • Regional Balance: Upgradation of NSTIs across five zones promotes equitable skill development.
  • Digital Learning: Emphasis on e‑learning platforms supports the Digital India agenda.

Related Constitutional / Legal Provisions

  • Article 41 of the Directive Principles of State Policy – the State shall secure the right to work, education and training.
  • Skill Development and Entrepreneurship Promotion (SDEP) Act, 2022 – provides legal framework for skill initiatives; PM‑SETU operates under its ambit.

Potential Challenges & Way Forward

  • Ensuring equitable access for marginalized groups within the PPP model.
  • Maintaining quality while scaling up infrastructure.
  • Monitoring outcomes – need robust MIS to track placement and skill acquisition.
  • Balancing profit motives of industry partners with social objectives.

References

  • National Scheme for Upgradation of ITIs (Ministry of Skill Development and Entrepreneurship)
  • Economic Survey 2025‑26 – Skill Development Chapter
  • World Economic Forum, Future of Jobs Report 2024