The Ministry of Skill Development and Entrepreneurship has released a progress report on PM-SETU (Pradhan Mantri Skilling and Employability Transformation through Upgraded ITIs), which launched on 4 October 2025. The scheme aims to modernise government Industrial Training Institutes by linking them with industry, upgrading infrastructure and introducing new technology-based courses. After one year, the initiative has identified 850 ITIs for transformation and secured industry commitments worth Rs 3,446 crore across 14 approved clusters.
Key facts
- PM-SETU launched on 4 October 2025 with a total outlay of Rs 60,000 crore (Rs 30,000 crore from Centre, Rs 20,000 crore from States, Rs 10,000 crore from industry)
- 850 ITIs identified in first year: 172 Hub ITIs and 678 Spoke ITIs
- 14 Strategic Investment Plans (SIPs) approved across 8 States and 1 Union Territory with Rs 3,446 crore commitment
- 35 States and Union Territories have formed State Steering Committees
- 36 States and Union Territories have identified clusters
- 200 Hub ITIs to be connected with 800 Spoke ITIs through Hub-and-Spoke model
- 32 new-age courses introduced covering AI, cybersecurity, electric vehicles, semiconductors, robotics, green hydrogen and other emerging technologies
- 5 National Skill Training Institutes (NSTIs) in Bhubaneswar, Chennai, Hyderabad, Kanpur and Ludhiana to be upgraded with international partnerships
- MoUs signed with Singapore, France and Australia for skill exchange; Joint Declaration of Intent with Germany
How PM-SETU is restructuring vocational training
The scheme operates through two main components. Component I covers 1,000 government ITIs restructured as Hub ITIs and Spoke ITIs. Hub ITIs serve as centres of excellence with modern facilities like innovation centres, production units and training-of-trainers infrastructure. Each Hub is connected to four Spoke ITIs on average, allowing students across multiple institutes to access shared advanced facilities, digital learning systems and incubation resources. This Hub-and-Spoke model spreads modern infrastructure across regions without duplicating expensive equipment at every location.
Component II focuses on strengthening 5 National Skill Training Institutes through sector-specific National Centres of Excellence and partnerships with leading skill training nations. These NSTIs will provide advanced trainer capacity building and align curriculum with global standards.
Industry-led governance through SPVs
A key feature of PM-SETU is industry participation through Special Purpose Vehicles (SPVs) for ITI clusters. Under this structure, an Anchor Industry Partner holds 51% ownership while the Centre and State Governments hold 24.5% each. This ensures industries directly influence training content, curriculum and infrastructure decisions based on their hiring needs. Industries submit Strategic Investment Plans outlining their commitment to cluster development, which the National Steering Committee approves.
Approved industry partners so far include Arcelor Mittal Nippon Steel India, Jindal companies, Apollo MedSkills, ZEN Technologies, and others across sectors like steel, manufacturing, healthcare, defence, pharmaceuticals and infrastructure.
New courses for emerging technology sectors
The Directorate General of Training has introduced 32 new-age courses under the Craftsmen Training Scheme. These cover Artificial Intelligence, Cyber Security, Additive Manufacturing, Electric Vehicles, Semiconductor Technology, Robotics, Green Hydrogen, Drones, Internet of Things, Solar Energy, 5G Technology and Software Testing. States can adopt these courses in their ITIs based on regional skill requirements and industry demand.
What this means for students and jobseekers
Students entering ITIs will have access to modern facilities and training aligned with current industry needs rather than outdated curricula. The Hub-and-Spoke model ensures that even students in smaller institutes can access advanced laboratories and digital learning systems. Exposure to new-age technologies like AI, cybersecurity and green energy will improve employability in emerging sectors. Direct industry involvement through SPVs means training content reflects what employers actually seek, improving placement prospects after graduation.
The scheme also strengthens placement services through Hub ITIs, creating more structured pathways from vocational training to employment.
What happens next
The National Steering Committee has approved transition of PM-SETU from pilot phase to nationwide rollout across all 200 identified ITI clusters. States and Union Territories will begin implementation based on industry readiness and their capacity. Additional SIPs from industries are expected to be approved as more States complete the process of inviting industry participation and formalising cluster proposals.