What Happened
- The government provided details of the Pradhan Mantri Skilling and Employability through Upgraded ITIs (PM-SETU) scheme, which uses a hub and spoke model for transforming Industrial Training Institutes (ITIs)
- Industry-led Special Purpose Vehicles (SPVs) serve as hubs, empowered to propose interventions and introduce new-age courses aligned with industry requirements
- 32 States/UTs have established State Steering Committees (chaired by their Chief Secretaries); 15 States/UTs have submitted proposals inviting industry participation
- The National Steering Committee, chaired by the MSDE Secretary, provides overall direction
- 31 new-age courses covering AI, renewable energy, drone technology, IoT, cybersecurity, electric vehicles, and 5G networks have been introduced by the Directorate General of Training (DGT)
Static Topic Bridges
Industrial Training Institutes — Institutional Background
Industrial Training Institutes (ITIs) are vocational training institutions that provide technical and craft training for school leavers and youth seeking employment. They operate under the Craftsmen Training Scheme (CTS) of the Ministry of Skill Development and Entrepreneurship. ITIs offer two types of courses: Engineering Trades (mechanical, electrical, electronics) and Non-Engineering Trades (commercial, healthcare, hospitality). The National Council for Vocational Training (NCVT) provides affiliation and prescribes course standards; the State Council for Vocational Training (SCVT) is the state-level counterpart.
- Total ITIs in India: ~14,000+ (government + private); government ITIs: ~2,300+
- NCVT: National Council for Vocational Training — under MSDE; sets standards for trades; ITC (Industrial Training Certificate) is issued by NCVT
- DGT (Directorate General of Training): technical authority under MSDE; issues trade curricula and standards for ITIs
- ITI admission: typically after Class 8 or Class 10; courses range from 6 months to 2 years
- PM-SETU specifically targets government ITIs for upgradation; private ITIs operate separately
Connection to this news: ITIs have historically been criticised for outdated equipment, misalignment with industry needs, and poor placement outcomes. PM-SETU's SPV-led upgradation model attempts to bridge this gap by giving industry partners direct management control.
Hub and Spoke Model — Design and Industry Partnership
In the PM-SETU hub-and-spoke model, a select "hub" ITI is upgraded to a Centre of Excellence with state-of-the-art equipment and industry-aligned courses, while surrounding "spoke" ITIs benefit from shared resources, faculty development, and student mobility. An industry-led Special Purpose Vehicle (SPV) — majority-controlled by an anchor industry partner — governs the hub, with the authority to introduce new courses, hire adjunct faculty, and align training with the company's specific technical needs.
- SPV structure: anchor industry partner holds majority management control; state government participates
- PM-SETU contrasts with earlier ITI upgradation schemes (e.g., the World Bank-funded Vocational Training Improvement Project): earlier schemes upgraded physical infrastructure but lacked industry governance
- New-age courses introduced: AI, ML, IoT, cybersecurity, drone technology, electric vehicles, renewable energy, 5G — 31 courses by DGT
- Industry partner role: can introduce proprietary training, facilitate apprenticeships, and provide direct placement channels
- National Apprenticeship Promotion Scheme (NAPS): complements PM-SETU — stipends for apprentices up to ₹1,500/month (basic training) + industry contribution
Connection to this news: The SPV governance structure is a departure from pure government management of ITIs — testing whether industry control of curriculum and training quality can deliver better employment outcomes than the conventional government-run model.
Vocational Education in NEP 2020 and the NSQF
The National Education Policy 2020 mandates integration of vocational education into mainstream schooling from Class 6, with a target of 50% Gross Enrolment Ratio in vocational education by 2025. The NSQF (National Skills Qualifications Framework) provides the competency levels (1–10) that connect school vocational training, ITI courses, polytechnic diplomas, and engineering degrees in a permeable pathway — enabling upward mobility from ITI to higher education.
- NEP 2020: vocational exposure from Class 6; "no hard separation" between academic and vocational education
- NSQF Levels 1–4: ITI trades; Level 5–6: polytechnic diplomas; Level 7+: engineering degrees
- Credit transfer: NSQF-qualified ITI graduates can apply for lateral entry into polytechnic programmes (AICTE norms)
- National Credit Framework (NCrF) 2023: issued by UGC; integrates NSQF with academic credit system; enables school-to-college credit mobility
- International recognition: NSQF aligned with ASEAN Qualifications Reference Framework (AQRF)
Connection to this news: PM-SETU's 31 new-age courses in emerging sectors must be mapped to NSQF levels and integrated into the NCrF to ensure that ITI graduates in AI or EV technology have a recognised pathway to continue education — otherwise the hub-and-spoke model risks creating skilled workers without formal upward mobility.
Key Facts & Data
- PM-SETU: hub and spoke model; industry-led SPVs as hub ITIs
- 32 States/UTs: State Steering Committees established; chaired by Chief Secretaries
- 15 States/UTs: proposals submitted for industry participation
- National Steering Committee: chaired by MSDE Secretary
- DGT introduced 31 new-age courses: AI, IoT, drones, EV, renewable energy, cybersecurity, 5G
- Total ITIs in India: ~14,000+ (government + private); government ITIs targeted by PM-SETU
- NEP 2020: 50% vocational education GER by 2025 target; vocational integration from Class 6
- NSQF: 10 levels; ITI courses mapped to Levels 1–4