Recently, the Union Cabinet approved the National Scheme for Upgradation of Industrial Training Institutes (ITIs).

About the National Scheme for Upgradation of Industrial Training Institutes (ITIs)

• It is a major vocational education scheme to revamp 1,000 ITIs and establish five Centres of Excellence for Skill Development.
• Nodal Ministry: Ministry of Skill Development and Entrepreneurship.
• Funding: Centrally Sponsored Scheme with Multi-Stakeholder Funding Model.
• Budget: The scheme will have a total outlay of ₹60,000 crore with contributions from the Centre (₹30,000 crore), States (₹20,000 crore), and Industry (₹10,000 crore).
• International Support: 50% of the Central Government’s share will be co-financed equally by the Asian Development Bank and the World Bank.
• Hub-and-Spoke Model: 1,000 Government ITIs will be upgraded in a hub-and-spoke model with industry-aligned courses and modern infrastructure.
  • “Hub” ITIs are top-performing institutes upgraded with advanced infrastructure and training capabilities to act as central resource centers.
  • “Spoke” ITIs are nearby smaller institutes linked to these hubs to access training, faculty development, and technology.
• This model ensures equitable skill development, optimizes resources, and promotes industry collaboration by creating a networked ecosystem of ITIs across regions.
• National Centres of Excellence (NCOEs): Five National Skill Training Institutes (NSTIs) in Bhubaneswar, Chennai, Hyderabad, Kanpur, and Ludhiana will be upgraded to house the Centres of Excellence.
  • The five NSTIs will undergo capacity augmentation to enhance training facilities and ensure consistency in vocational education standards.
• Trainers for the scheme: Both pre-service and in-service training will be provided to 50,000 trainers to ensure quality education delivery.
• SPV-Based Implementation: The scheme will adopt an industry-led Special Purpose Vehicle (SPV) model to ensure outcome-driven implementation and deep industry involvement.

Benefits

• Skilling Youth: The scheme targets to skill 20 lakh youth over a five-year period through revamped, industry-relevant vocational courses.
• Employment-Ready Workforce:  It aims to bridge the gap between local workforce availability and industry demand, particularly benefiting MSMEs.
• Boost to Emerging Sectors: The focus is on preparing skilled manpower for sectors like electronics, automotive, and renewable energy.
• Addressing Challenges in Vocational Training: The scheme tackles issues such as poor infrastructure, outdated course content, low employability, and negative perception of ITIs.
  • Flexibility in Fund Allocation to match local needs.
  • Institutes will receive need-based investment support based on their specific infrastructure and trade upgrade requirements.

Strategic Alignment with National Goals

• ‘Viksit Bharat 2047’ Vision: The scheme is a key enabler in achieving the Prime Minister’s vision of a developed India by 2047 through skilling-led growth.
• Rebranding ITIs: Government-owned, industry-managed ITIs will be rebranded as aspirational centres for modern vocational education.
• Strengthening Global Competitiveness: By creating a future-ready skilled workforce, the scheme enhances India’s productivity and global economic positioning.