In a major push to revamp vocational education and bolster industry-ready workforce training, the Union Cabinet, chaired by Prime Minister Narendra Modi, has approved the National Scheme for Industrial Training Institute (ITI) Upgradation and Setting up of Five National Centres of Excellence for Skilling.
This initiative, announced in Budget 2024-25 and 2025-26, is set to reshape India’s skill development landscape, with a financial outlay of ₹60,000 crore.
The scheme will focus on upgrading 1,000 government ITIs, aligning their courses with industry needs, and modernising infrastructure. Additionally, five National Skill Training Institutes (NSTIs) in Bhubaneswar, Chennai, Hyderabad, Kanpur, and Ludhiana will be enhanced with state-of-the-art training facilities.
With an expected 20 lakh youth to be skilled over the next five years, the initiative will strengthen India’s position as a global manufacturing and innovation hub. A key highlight is the industry-led Special Purpose Vehicle (SPV) model, which will ensure outcome-driven implementation and deeper industry participation in ITI management.
The scheme aims to bridge the gap between workforce supply and demand, helping micro, small, and medium enterprises (MSMEs) access employment-ready workers. This move aligns with India’s aspiration to become a skilled manpower powerhouse for sectors such as electronics, automotive, and renewable energy.
The government’s vision is to transform ITIs into aspirational, industry-managed institutions that will drive economic growth, making vocational education a viable and attractive career pathway.
