In a significant move to bolster vocational education and skill development, the Union Cabinet, chaired by Prime Minister Narendra Modi, has approved a ₹60,000 crore scheme aimed at upgrading 1,000 government-run Industrial Training Institutes (ITIs) and establishing five National Centres of Excellence for Skilling.
The scheme is structured as a centrally sponsored initiative with a collaborative funding approach. The financial outlay includes Rs. 30,000 crore from the central government, Rs. 20,000 crore from state governments, and Rs. 10,000 crore from industry partners. Notably, 50 per cent of the central share will be co-financed equally by the Asian Development Bank and the World Bank.
A total of 1,000 government ITIs will be upgraded under a hub-and-spoke model. Hub ITIs will offer specialized short-term courses tailored to specific industry needs, while spoke ITIs will focus on broader vocational training. This approach aims to align training programs with industry requirements, ensuring the courses offered are relevant and up-to-date. The scheme includes the capacity augmentation of five National Skill Training Institutes (NSTIs) located in Bhubaneswar, Chennai, Hyderabad, Kanpur, and Ludhiana. Each of these NSTIs will host a National Centre of Excellence for Skilling, envisioned to serve as premier institutions for advanced skill training and development.
To ensure high-quality instruction, the scheme plans to provide pre-service and in-service training for 50,000 trainers. This initiative aims to enhance the pedagogical skills of trainers, thereby improving the overall quality of vocational education. Over the next five years, the scheme also aims to provide skills training to 2 million youth. The focus of the training will be to align workforce capabilities with industry demands in different important sectors like electronics and renewable energy.
A Special Purpose Vehicle (SPV) model, led by industry experts, will be used by the scheme to make sure its implementation leads to fruitful outcomes. This approach is designed to foster deep industry collaboration in the planning and management of ITI upgradation, marking a significant shift from previous efforts.
By addressing long-standing challenges such as outdated infrastructure and course content, the scheme aims to transform ITIs into aspirational institutes that produce employment-ready workers, thereby supporting India’s vision of becoming a global manufacturing and innovation powerhouse.
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While the scheme presents a comprehensive plan for revitalizing vocational education, its success will depend on effective implementation, continuous monitoring, and adaptability to evolving industry trends. Ensuring that the upgraded ITIs maintain high standards of training and that graduates are readily absorbed into the workforce will be critical metrics of success.
This initiative underscores the government’s commitment to enhancing vocational education and bridging the skill gap in the country, aligning with the broader objective of achieving a developed India by 2047.
