In a transformative move to revamp vocational education and align it with the evolving needs of the industry, the Union Cabinet chaired by Prime Minister Shri Narendra Modi has approved the National Scheme for Industrial Training Institute (ITI) Upgradation and the establishment of five National Centres of Excellence (NCoEs) for Skilling. This initiative will be implemented as a Centrally Sponsored Scheme, as announced in the Union Budgets of 2024–25 and 2025–26, with a total financial outlay of Rs. 60,000 crore.
The funding willNational Scheme for ITI Upgradation be shared among the Central Government (Rs. 30,000 crore), State Governments (Rs. 20,000 crore), and Industry (Rs. 10,000 crore), with 50% of the central share co-financed equally by the Asian Development Bank and the World Bank.
Key features of the scheme
Upgradation of 1,000 Government ITIs using a hub-and-spoke model focused on revamped, industry-aligned trades.
Capacity augmentation of five National Skill Training Institutes (NSTIs) located in Bhubaneswar, Chennai, Hyderabad, Kanpur, and Ludhiana, which will also house the new National Centres of Excellence for Skilling.
Skilling of 20 lakh youth over five years to meet industry-specific workforce demands, especially in high-growth sectors like electronics, automotive, and renewable energy.
Training for 50,000 trainers, covering both pre-service and in-service capacity building to improve the quality of training delivery.
Strategic industry collaboration
For the first time, a Special Purpose Vehicle (SPV) model led by industry will be used for implementation. This approach ensures deep industry participation in planning, governance, and curriculum development. The scheme emphasizes flexible, need-based funding, allowing institutions to upgrade infrastructure, expand capacity, and introduce capital-intensive, future-ready trades.
Also read: Industrial Training Institutes – ITIs: Pride of our nation in technical training
India’s network of 14,615 ITIs, with an enrolment of over 14.40 lakh students, has grown significantly since 2014. However, challenges persist in infrastructure, course relevance, employability, and the overall perception of vocational education. By addressing these issues holistically, the scheme aims to position ITIs as aspirational institutes that are government-owned but industry-managed, thereby creating a pipeline of employment-ready youth aligned with India’s economic growth goals.
This national-level intervention marks a pivotal moment in India’s journey toward becoming a global manufacturing and innovation powerhouse, fully supporting the vision of Viksit Bharat@2047 through robust and inclusive skilling initiatives.
