Cabinet Clears Rs 600 billion ITI Upgrade Scheme

08 May 2025 CW Team

In a significant move to modernise vocational training in India, the Union Cabinet, chaired by Prime Minister Narendra Modi, has approved the National Scheme for Industrial Training Institute (ITI) Upgradation and the establishment of five National Centres of Excellence for Skilling. This centrally sponsored scheme, announced under Budgets 2024–25 and 2025–26, carries a total outlay of Rs 600 billion, with contributions from the Centre (Rs 300 billion), States (Rs 200 billion), and Industry (Rs 100 billion). Half of the central share will be co-financed by the Asian Development Bank and World Bank.

The scheme will focus on upgrading 1,000 government ITIs through a hub-and-spoke model aligned with industry needs and revamping courses to match evolving skill demands. It also includes capacity enhancement of five National Skill Training Institutes (NSTIs)—located in Bhubaneswar, Chennai, Hyderabad, Kanpur, and Ludhiana—where five National Centres of Excellence will be established.

The initiative aims to skill 2 million youth over five years, address skill shortages in high-growth sectors such as electronics, automotive, and renewable energy, and create employment-ready talent pools aligned with MSME and broader industry requirements. A key innovation is the introduction of an industry-led Special Purpose Vehicle (SPV) model to oversee implementation, ensuring sustained private sector engagement.

The scheme also includes enhanced Training of Trainers (ToT) facilities and aims to train 50,000 trainers through both pre-service and in-service programs. With a flexible, need-based investment framework, it seeks to address longstanding gaps in infrastructure, course relevance, and the perception of vocational education.

Positioned as a key component of the Viksit Bharat vision for 2047, this initiative is expected to transform India’s ITI ecosystem into aspirational, government-owned but industry-managed institutions that equip youth with future-ready skills.

(PIB)

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