SYLLABUS

GS-2: Issues Relating to Development and Management of Social Sector/Services relating to Health, Education, Human Resources.

GS-3: Indian Economy and issues relating to Planning, Mobilization of Resources, Growth, Development and Employment.  

Context: The Government has approved the pan-India rollout of PM-SETU (Pradhan Mantri Skilling and Employability Transformation through Upgraded ITIs) across all 200 identified ITI clusters.

More on the News

• The decision was taken at the 4th National Steering Committee (NSC) meeting under the Ministry of Skill Development and Entrepreneurship (MSDE).
• PM-SETU has now entered a full-scale national implementation phase, enabling rollout across all 200 identified ITI clusters.
• The 4th NSC meeting also approved Strategic Investment Plans (SIPs) worth ₹1,237.58 crore for five ITI clusters—one each in Odisha and Gujarat, and three in Telangana—with participation of Anchor Industry Partners.
• States and Union Territories can now proceed with implementation based on industry readiness, cluster preparedness and execution capacity.
• Earlier, Andhra Pradesh became the first State to secure approval of a Strategic Investment Plan under PM-SETU, marking the operationalisation of the industry-led ITI transformation model.

About PM-SETU

• Pradhan Mantri Skilling and Employability Transformation through Upgraded ITIs (PM-SETU) is a Centrally Sponsored Scheme launched in October 2025 to transform Industrial Training Institutes (ITIs) into modern, industry-aligned skill institutions.
• Objectives
  • Transform ITIs into industry-led, state-of-the-art skill institutions aligned with labour-market needs.
  • Enhance employability through demand-driven training, modern pedagogy and stronger industry linkages.
  • Modernise training infrastructure and promote sustainable industry participation in vocational education.
  • Develop five National Skill Training Institutes (NSTIs) as premier trainer institutions for advanced skilling.
  • Support the vision of Viksit Bharat 2047 through creation of aspirational skill hubs.
• Components of the Scheme
  • Component I: Upgradation of ITIs
    • Upgrade 1,000 Government ITIs through an industry-led Hub-and-Spoke model, comprising 200 Hub ITIs and 800 Spoke ITIs.
  • Component II: Strengthening NSTIs
    • Capacity augmentation of five National Skill Training Institutes (NSTIs) and development of Centres of Excellence for advanced trainer training and specialised skilling.
• Financing Pattern: The Scheme has a total outlay of ₹60,000 crore over five years.
  • Central Share: ₹30,000 crore; State Share: ₹20,000 crore; Industry Share: ₹10,000 crore

Key Features of the PM-SETU

• Industry-Led Governance: Industry participation is institutionalised through Anchor Industry Partners (AIPs) and Special Purpose Vehicles (SPVs) to ensure demand-driven planning, governance and implementation.
• Infrastructure and Curriculum Modernisation: The scheme upgrades training infrastructure and introduces new-age, industry-aligned courses to equip learners with skills relevant to emerging technologies and labour-market needs.
• Flexible and Innovative Learning: It promotes modular and blended learning, short-term programmes and trainer development to enhance flexibility, innovation and institutional sustainability.
• Student-Centric Services: It strengthens employability through apprenticeships, career support, life-skills training and placement-oriented learning opportunities.

Significance of the Scheme

• Bridging India's Skill Gap: PM-SETU seeks to align vocational training with industry requirements, addressing the long-standing mismatch between skills imparted and labour-market demand.
• Strengthening Employability: Industry-led governance, updated curricula and practical training are expected to improve workforce readiness and employment outcomes among youth.
• Modernising the ITI Ecosystem: The scheme promotes large-scale infrastructure upgradation, governance reforms and technological modernisation across India's ITI network.
• Preparing Workforce for Emerging Technologies: Through new-age courses, modern equipment and industry-aligned training, PM-SETU aims to equip youth with skills relevant to Industry 4.0 and future growth sectors.