PM-SETU: One Year of Transforming India’s ITIs

Why in the News?

• PM-SETU was launched on 4 October 2025.
• Completes one year on 4 October 2026.
• Focus: modernisation of Government ITIs, industry-aligned training and demand-driven vocational education. Pasted text

Key Facts

• Full form: Pradhan Mantri Skilling and Employability Transformation through Upgraded ITIs.
• Total outlay: ₹60,000 crore
  • Centre: ₹30,000 crore
  • States: ₹20,000 crore
  • Industry: ₹10,000 crore
• Targets 1,000 Government ITIs.
• Uses Hub-and-Spoke model:
  • 200 Hub ITIs
  • 800 Spoke ITIs
• Each Hub connected to around 4 Spoke ITIs. Pasted text

Component I: Government ITIs

• 1,000 Government ITIs upgraded.
• Hubs provide:
  • Innovation centres
  • Training-of-trainers facilities
  • Production units
  • Placement services
• Spokes provide wider access to modern infrastructure and training.
• Focus on smart classrooms, modern laboratories, digital content and industry-aligned courses.

Component II: NSTIs

• Capacity augmentation of 5 National Skill Training Institutes (NSTIs):
  1. Bhubaneswar
  2. Chennai
  3. Hyderabad
  4. Kanpur
  5. Ludhiana
• Establishment of sector-specific National Centres of Excellence.
• Advanced training of trainers through international partnerships. Pasted text

Industry-Led Governance

• ITI selection is led by States/UTs in consultation with industry.
• National Steering Committee (NSC):
  • Chaired by Secretary, MSDE.
  • Provides policy direction.
  • Finalises guidelines.
  • Monitors implementation.
• Strategic Investment Plan (SIP) required from prospective industry partners. Pasted text

SPV Structure

• Special Purpose Vehicles (SPVs) govern upgraded ITI clusters.
• Anchor Industry Partner: 51%
• Centre: 24.5%
• State Government: 24.5% Pasted text

One-Year Progress

• 850 ITIs identified:
  • 172 Hub ITIs
  • 678 Spoke ITIs
• 36 States/UTs identified clusters and created dedicated budget heads.
• 35 States/UTs constituted State Steering Committees.
• 26 States/UTs initiated industry participation.
• Nationwide rollout approved for all 200 ITI clusters.
• SIPs approved for 14 ITI clusters.
• SIP investment: ₹3,446 crore. Pasted text

New-Age Courses

DGT has introduced 32 new-age courses under the Craftsmen Training Scheme covering:

• Artificial Intelligence
• Cyber Security
• Additive Manufacturing
• Electric Vehicles
• Semiconductor Technology
• Robotics
• Green Hydrogen
• Drones
• Internet of Things (IoT)
• Solar Energy
• 5G
• Software Testing Pasted text

International Partnerships

• Singapore – NSTI Chennai
• France – NSTI Kanpur
• Australia – NSTI Bhubaneswar
• Germany – NSTI Hyderabad Pasted text

ITIs: Important Background

• ITIs provide vocational training under the Craftsmen Training Scheme (CTS).
• Training duration: 6 months to 2 years depending on trade.
• Directorate General of Training (DGT), under MSDE, is the apex organisation for vocational training at national level.
• ITIs are under administrative and financial control of State Governments and UT Administrations.
• Total ITIs increased from 9,776 in 2014 to 13,888 in 2026.
• ITI enrolment increased from 9.51 lakh in 2014-15 to 14.70 lakh in 2025-26. Pasted text

UPSC Prelims Quick Revision

1. PM-SETU was launched on 4 October 2025.
2. Total outlay is ₹60,000 crore.
3. It targets 1,000 Government ITIs.
4. Hub-Spoke structure: 200 Hubs + 800 Spokes.
5. Industry gets 51% ownership in SPVs.
6. Five NSTIs are covered under Component II.
7. DGT introduced 32 new-age courses.
8. 850 ITIs have been identified after one year. Pasted text

UPSC Prelims Trap

• PM-SETU targets Government ITIs, not all private ITIs.
• ITIs are under State/UT administrative and financial control, while DGT coordinates vocational training nationally.
• SPV ownership is 51% Anchor Industry Partner + 24.5% Centre + 24.5% State.
• PM-SETU has two components: Government ITI upgradation and NSTI capacity augmentation.