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):
- Bhubaneswar
- Chennai
- Hyderabad
- Kanpur
- 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
- PM-SETU was launched on 4 October 2025.
- Total outlay is ₹60,000 crore.
- It targets 1,000 Government ITIs.
- Hub-Spoke structure: 200 Hubs + 800 Spokes.
- Industry gets 51% ownership in SPVs.
- Five NSTIs are covered under Component II.
- DGT introduced 32 new-age courses.
- 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.



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