India Launches ₹60,000 Cr Scheme to Upgrade ITIs and Skill 20 Lakh Youth
In a major move to boost vocational education in India, the Union Cabinet, chaired by Prime Minister Narendra Modi, has approved a new nationwide scheme aimed at upgrading Industrial Training Institutes (ITIs) and establishing five National Centres of Excellence for Skilling. This ambitious initiative will be implemented as a Centrally Sponsored Scheme with a total investment of ₹60,000 crore. The funding will include ₹30,000 crore from the central government, ₹20,000 crore from states, and ₹10,000 crore from industry partners. Additionally, the Asian Development Bank and the World Bank will co-finance 50% of the central share.
The scheme aims to transform 1,000 government ITIs into modern, industry-aligned institutes through a hub-and-spoke model. It will introduce revamped courses tailored to meet the latest industry demands, particularly in high-growth areas like electronics, automotive, and renewable energy. The initiative also includes the capacity expansion of five National Skill Training Institutes (NSTIs) located in Bhubaneswar, Chennai, Hyderabad, Kanpur, and Ludhiana. These NSTIs will also host the five new Centres of Excellence, and offer improved facilities for training 50,000 trainers through both pre-service and in-service programs.
A key feature of the scheme is its deep partnership with industry, with planning and management of ITI upgrades guided by a Special Purpose Vehicle (SPV) led by industry stakeholders. This will ensure that vocational training remains relevant to current and future workforce needs. The scheme aims to skill 20 lakh youth over five years, making them job-ready and helping Micro, Small, and Medium Enterprises (MSMEs) meet their human resource demands.
This initiative addresses long-standing issues in infrastructure, outdated curricula, and limited employment prospects for ITI graduates. By aligning training programs with industry needs and offering modern facilities, the government seeks to elevate the status of ITIs and make vocational education aspirational. This step is a significant stride toward achieving the vision of a developed India (Viksit Bharat) by 2047, with skilled manpower driving economic growth and innovation.
Source: PIB
