The Union Cabinet has approved a ₹60,000 crore plan aimed at upgrading India’s Industrial Training Institutes (ITIs) to better align skilling infrastructure with emerging industry needs. Announced in the Union Budget 2024–25, the scheme will focus on the modernisation of 1,000 government ITIs through a hub-and-spoke model involving active industry partnerships.
The plan will be implemented over five years, with the Centre contributing ₹30,000 crore, states pitching in ₹20,000 crore, and industry players investing ₹10,000 crore. Additionally, the Asian Development Bank and World Bank will co-finance 50% of the central government’s share equally, adding further momentum to the skilling drive.
According to the official statement issued post-Cabinet meeting, the scheme introduces a flexible funding structure to address long-standing gaps in infrastructure, capacity expansion, and the introduction of new-age, capital-intensive trades.
National Skill Training Institutes to Be Upgraded
In a parallel move, the Cabinet has also cleared the setting up of five National Centres of Excellence for Skilling at existing National Skill Training Institutes (NSTIs) located in Bhubaneswar, Chennai, Hyderabad, Kanpur, and Ludhiana. These institutes will be enhanced to provide high-quality trainer education, strengthening the foundation for India’s vocational training ecosystem.
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NSTIs, first established in 1963, currently number 33 across India and primarily focus on training instructors to support the broader skilling mission.
Industry-Driven Skilling for Two Million Youth
The upgraded ITIs are expected to skill over two million youth, offering courses that match human capital needs with industry demand, particularly benefiting MSMEs seeking employment-ready workers.
The official release noted that the program aims to realign vocational training with the requirements of modern industries, addressing challenges in infrastructure, course relevance, and employability. By focusing on course modernisation and improving perceptions of vocational training, the scheme aims to position ITIs as a critical enabler for India’s ambitions to become a global manufacturing and innovation hub.
