India's vocational training system is entering a major modernisation phase as the Pradhan Mantri Skilling and Employability Transformation through Upgraded ITIs (PM-SETU) completes its first year.
The scheme was launched to transform Government Industrial Training Institutes into modern, industry-aligned training centres, with a focus on improving training quality, upgrading infrastructure and connecting courses more closely with changing workforce requirements.
Editorial Insight
Key Highlights
Important points readers should notice.
Issue/Event: PM-SETU completes one year with progress reported in the modernisation of Government Industrial Training Institutes.
Location: India
Authority/Organisation: Ministry of Skill Development and Entrepreneurship
Action Taken: The government is upgrading 1,000 Government ITIs through a hub-and-spoke model, modern infrastructure, industry participation and new-age vocational courses.
Impact: The programme aims to improve the quality of vocational training, align ITI courses with industry requirements and strengthen employment opportunities for students.
PM-SETU has a total outlay of ₹60,000 crore, with ₹30,000 crore from the Centre, ₹20,000 crore from states and ₹10,000 crore from industry.
The programme covers 1,000 Government ITIs through a hub-and-spoke model. This includes 200 Hub ITIs and 800 Spoke ITIs, with the hubs expected to provide advanced facilities and resources that can also support linked institutions.
The government's first-year progress report shows that 850 ITIs have been identified, comprising 172 Hub ITIs and 678 Spoke ITIs.
Editorial Analysis
Why This Matters
Industrial Training Institutes have been a major part of India's vocational education system for decades, providing practical training in engineering and non-engineering trades. However, changing technology and industry requirements have increased the need for modern equipment, updated curricula and closer employer participation. PM-SETU was launched in 2025 as a structured effort to address these gaps by combining infrastructure upgrades with industry-linked governance and demand-driven training.
The implementation is also moving towards industry participation. According to the government's latest assessment, all 36 States and Union Territories have identified clusters, while 35 have constituted State Steering Committees. Twenty-six States and Union Territories have started the process of inviting industry participation.
The National Steering Committee has approved the transition from the pilot phase to nationwide implementation across the identified ITI clusters.
Another important development is the approval of 14 Strategic Investment Plans covering ITI clusters in eight states and one Union Territory. The approved plans represent an investment of around ₹3,446 crore.
The programme is designed to bring modern infrastructure into ITIs, including smart classrooms, updated laboratories, digital learning systems and training facilities aligned with industry requirements.
PM-SETU also introduces new-age courses intended to prepare students for emerging occupations and technologies rather than limiting vocational education to traditional trades.
The model gives a larger role to industry in determining local skill requirements. Special Purpose Vehicles are planned for upgraded ITI clusters, with Anchor Industry Partners playing a central role in cluster development and operations.
This industry connection is intended to address one of the long-standing challenges in vocational education: the gap between what students are trained to do and what employers actually need.
The government's broader ITI data also indicates an expansion of the vocational training ecosystem. The total number of ITIs, including Government and private institutions, has increased from 9,776 in 2014 to 13,888 in 2026.
ITI enrolment has also risen from 9.51 lakh students in 2014–15 to 14.70 lakh in 2025–26, according to the government's latest assessment.
PM-SETU is therefore not limited to constructing or upgrading buildings. Its larger objective is to make vocational training more relevant to India's changing labour market.
For students, the most important question will ultimately be whether upgraded infrastructure and industry participation translate into better training, stronger placement opportunities and skills that remain relevant as sectors such as advanced manufacturing, electric mobility, digital technology and clean energy expand.
