PM-SETU at one year: 850 ITIs identified, 14 cluster plans approved

The brief in 4 cards

1. Context1 / 4

   PM-SETU means Pradhan Mantri Skilling and Employability Transformation through Upgraded ITIs. The scheme completed one year on 4 October 2026, following its launch on 4 October 2025. The Cabinet had approved its framework on 7 May 2025.

   It aims to upgrade 1,000 government Industrial Training Institutes (ITIs) through shared infrastructure and industry-aligned courses. It also strengthens five National Skill Training Institutes (NSTIs).

   The anniversary update, issued on 3 October 2026, records 850 ITIs identified and investment plans approved for 14 clusters. Identification and plan approval show implementation progress. They do not establish that upgrades are complete or that trainees have gained jobs or higher wages.

2. Key highlights2 / 4

   The scheme combines public funding, industry participation and instructor training.

   Item	Scheme design
   Type and ministry	Centrally sponsored scheme under the Ministry of Skill Development and Entrepreneurship (MSDE)
   Total outlay	₹60,000 crore: Centre ₹30,000 crore; States ₹20,000 crore; industry ₹10,000 crore
   Co-financing	Asian Development Bank and World Bank co-finance 50% of the Centre's share, equally
   Duration and target	Five years; skill 20 lakh youth
   Component I	Upgrade 1,000 government ITIs: 200 Hubs and 800 Spokes
   Component II	Expand five NSTIs at Bhubaneswar, Chennai, Hyderabad, Kanpur and Ludhiana, with National Centres of Excellence and advanced instructor training

   The anniversary update gives the following implementation snapshot, as of 3 October 2026.

   Indicator	Status
   ITIs identified	850: 172 Hubs and 678 Spokes
   Cluster investment plans approved	14, worth ₹3,446 crore
   States and UTs with State Steering Committees	35
   States and UTs inviting industry participation	26

   Rollout: The National Steering Committee approved a move from the pilot phase to nationwide implementation across all 200 identified clusters. Implementation depends on industry readiness and local capacity. Nationwide rollout approval does not mean all 200 investment plans have been approved.

   Wider ITI trends: The anniversary update gives 9,776 ITIs in 2014 and 13,888 in 2026, an increase of about 42%. It gives enrolment of 9.51 lakh in 2014–15 and 14.70 lakh in 2025–26. These are background figures for the wider system, not outcomes attributable to PM-SETU.

3. Key concepts3 / 4
   1. How does the hub-and-spoke model work?

   A Hub ITI shares advanced facilities with about four Spoke ITIs. Shared facilities can include modern laboratories, digital learning, innovation and incubation centres, production units, instructor training and placement services. The spokes widen access within the cluster.

   2. How does industry participate?

   A Strategic Investment Plan (SIP) sets out the proposed cluster upgrades and investment. An industry-led Special Purpose Vehicle (SPV) manages the cluster. Anchor Industry Partners (AIPs) bring industrial expertise and commitments. Courses and equipment are intended to respond to local labour demand.

   3. Who sets standards and who administers institutes?

   Government ITIs are administered and financed by State governments or Union Territory administrations. The Directorate General of Training (DGT) under MSDE develops and coordinates vocational training nationally, including policy, standards, curriculum, affiliation, instructor training and trade testing. Private ITIs have private management within the training and affiliation framework.

   4. What is the Craftsmen Training Scheme?

   The Craftsmen Training Scheme (CTS) provides vocational courses through government and private ITIs. Course duration varies from six months to two years, depending on the trade. NSTIs also help train instructors, so modern equipment needs to be matched by teaching capability.

4. Way forward4 / 4

   Measure trainee outcomes. Track placements, wages, apprenticeships and continued employment for each cluster. Approved plans and identified institutes cannot by themselves show that training has improved livelihoods.

   Secure public and industry commitments. States select institutes with industry, while the funding design includes ₹10,000 crore from industry. Timely State budgets, clear responsibilities and firm partner commitments matter for delivery.

   Keep training broad and current. Instructor development at NSTIs must keep pace with new equipment and courses. Industry involvement can improve relevance, but training should remain useful across employers rather than become too narrow for one firm.

   Protect access across the system. The upgrade target covers 1,000 government ITIs. Students in other government and private institutes also need pathways to quality training. Shared facilities and wider instructor development can help reduce gaps.

   These are proposed measures for evaluating implementation, rather than a newly approved policy package.

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