PM-SETU: Skilling and Employability Transformation through Upgraded ITIs

Last updated: 2026-11-13 · MockMentor

The Pradhan Mantri Skilling and Employability Transformation through Upgraded ITIs (PM-SETU) scheme, launched on 4 October 2025, will upgrade 1,000 Government Industrial Training Institutes (ITIs) over 2025 to 2030 with industry as a partner. It is a Centrally Sponsored Scheme with a total outlay of ₹60,000 crore.

In one line: turn ITIs into government-owned, industry-managed institutes, with 200 hubs and 800 spokes, to skill 20 lakh youth in five years.

At a glance

Item Details
Launched 4 October 2025
Period 2025 to 2030
Outlay ₹60,000 crore (Centre ₹30,000 crore, States ₹20,000 crore, industry ₹10,000 crore)
Co-financing Half the Central share from ADB and the World Bank equally
Nodal agency Directorate General of Training (DGT)
Target 20 lakh youth

Two components

  1. 1,000 ITIs in a hub-and-spoke model: 200 hub ITIs with advanced labs and incubation, linked to 800 spoke ITIs. Each cluster is run by a special purpose vehicle, either industry-led (51% with the anchor industry partner) or State-led.
  2. Five National Skill Training Institutes upgraded, at Bhubaneswar, Chennai, Hyderabad, Kanpur and Ludhiana (₹1,100 crore).

Possible exam questions

  1. Can industry participation fix the quality problems of ITIs? Discuss.
  2. Why is vocational training less valued than academic degrees in India?

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