Why in news?
The Ministry of Skill Development and Entrepreneurship has invited industry leaders to participate as Anchor Partners in the PM‑SETU scheme. Several states, including Karnataka, Gujarat, Assam and Chandigarh, have issued Expressions of Interest to identify companies that will help upgrade government Industrial Training Institutes (ITIs) into modern, industry‑aligned campuses.
Background
Approved by the Union Cabinet in May 2025, the PM‑SETU scheme aims to transform India’s vocational training ecosystem by modernising 1,000 government ITIs. The initiative recognises that India’s workforce must continually upskill to meet the demands of a rapidly changing economy. By bringing industry partners into the design and delivery of training, the scheme seeks to make skill development demand‑driven rather than supply‑driven.
Key components
- Hub‑and‑spoke structure: 200 hub ITIs will be developed with advanced infrastructure, innovation and incubation centres, production units, trainer training facilities and placement services. Each hub will support around four spoke ITIs (800 in total) to expand outreach.
- Industry partnerships: Special Purpose Vehicles (SPVs) will be set up with credible Anchor Industry Partners to manage clusters of ITIs. Industry will co‑design curricula, provide equipment, mentor trainees and help place graduates.
- Comprehensive training pathways: The scheme will offer long‑term diploma courses, short‑term programmes and executive training to meet a range of skill needs. Existing courses will be revamped and new courses introduced in emerging sectors.
- Centres of excellence: Five National Skill Training Institutes in Bhubaneswar, Chennai, Hyderabad, Kanpur and Ludhiana will be developed into world‑class centres through partnerships with global institutions.
- Financial outlay: The scheme has an estimated budget of ₹60,000 crore over five years. Funding comes from the central government and is co‑financed by the World Bank and Asian Development Bank.
Significance
By linking technical education directly to industry needs, PM‑SETU addresses one of the key challenges facing India’s workforce – the mismatch between skills taught and jobs available. The hub‑and‑spoke model encourages regional clusters of excellence while ensuring that smaller ITIs benefit from shared resources. With substantial investment and international support, the scheme could create a pipeline of skilled workers ready for high‑growth sectors like electronics manufacturing, renewable energy and advanced textiles.
Conclusion
For PM‑SETU to succeed, strong collaboration between government, industry and training institutes is essential. Transparent selection of partners, modern curricula and measurable outcomes will determine whether this ambitious programme truly transforms India’s skilling landscape.
Source: News On Air