PM-SETU: One Year of Transforming India’s ITIs

Key Highlights:

• PM-SETU (Pradhan Mantri Skilling and Employability Transformation through Upgraded ITIs) was launched on October 4, 2025.
• The scheme aims to upgrade 1000 Government Industrial Training Institutes (ITIs) through a Hub-and-Spoke model and augment 5 National Skill Training Institutes (NSTIs).
• It has a total outlay of ₹60,000 crore, with contributions from the Centre, States, and industry.
• In its first year, 850 ITIs have been identified, and Strategic Investment Plans (SIPs) for 14 ITI clusters worth ₹3446 crore have been approved.
• The initiative introduces 32 new-age courses in emerging technologies and fosters international partnerships for advanced skilling.

Detailed Insights:

• PM-SETU seeks to enhance the quality, relevance, and industry orientation of vocational training in India.
• The Hub-and-Spoke model involves 200 Hub ITIs connected to 800 Spoke ITIs, sharing advanced infrastructure and digital learning.
• Capacity augmentation of NSTIs includes setting up sector-specific National Centres of Excellence and advanced trainer training.
• Industry participation is ensured through Strategic Investment Plans (SIPs) and Special Purpose Vehicles (SPVs) for industry-led governance.
• SPVs grant 51% ownership to the Anchor Industry Partner, with the Centre and State Governments holding 24.5% each.
• The Directorate General of Training (DGT) under the Ministry of Skill Development and Entrepreneurship (MSDE) oversees vocational training.
• International MoUs have been signed with Singapore, France, Australia, and a Joint Declaration of Intent with Germany for specific NSTIs.

Key Concepts Involved:

• PM-SETU: A government scheme to transform Industrial Training Institutes (ITIs) into modern, industry-aligned vocational training centers.
• Industrial Training Institutes (ITIs): Vocational training centers providing practical skills for employment in various trades.
• National Skill Training Institutes (NSTIs): Advanced training institutes focusing on specialized skill development and training of trainers.
• Hub-and-Spoke Model: A network structure where central "hub" institutions provide resources and support to surrounding "spoke" institutions.
• Special Purpose Vehicle (SPV): A legal entity created for a specific, limited purpose, here for industry-led governance of ITI clusters.