In a landmark move aimed at reshaping vocational education in India, the Union Cabinet, chaired by Prime Minister Narendra Modi, has approved the National Scheme for Industrial Training Institute (ITI) Upgradation along with the establishment of five National Centres of Excellence for Skilling. This initiative marks a significant stride toward empowering India’s youth with industry-relevant skills and bridging the gap between workforce readiness and employment opportunities.
With an ambitious outlay of ₹60,000 crore, the scheme will be implemented as a Centrally Sponsored Scheme with contributions from the Central and State Governments, industry stakeholders, and co-financing support from the Asian Development Bank and the World Bank. The plan is to upgrade 1,000 government ITIs across the country using a hub-and-spoke model and transform them into modern, industry-managed institutes offering revamped courses aligned with evolving market needs.
Over the next five years, the scheme is expected to skill nearly 20 lakh youth through cutting-edge courses that meet the rising human capital requirements of various industries, including MSMEs. The approach is deeply collaborative, involving close coordination between state governments and private industry to ensure that vocational training is both aspirational and effective.
For the first time, a Special Purpose Vehicle (SPV) model led by industry will be adopted to drive outcomes and ensure accountability. This shift is not just administrative but visionary, reflecting a long-awaited alignment of education with employability. Addressing the long-standing issues of outdated infrastructure and limited course relevance, the scheme provides flexible funding tailored to the specific needs of each institution.
In a parallel effort, five National Skill Training Institutes (NSTIs) located in Bhubaneswar, Chennai, Hyderabad, Kanpur, and Ludhiana will be upgraded to house Centres of Excellence. These will serve as apex institutions for training trainers and building capacity for the future. Around 50,000 trainers are set to benefit from both pre-service and in-service training under this scheme.
This initiative is not just about physical infrastructure or numbers—it’s a compassionate response to the aspirations of millions of young Indians who seek dignity through meaningful employment. By reimagining vocational education and creating real pathways to prosperity, the government aims to change the public perception of ITIs from being last-resort institutions to being first-choice destinations for skilled careers.
The move also reflects the larger national vision of “Viksit Bharat” by 2047, with skill development identified as a core driver of inclusive economic growth. As India positions itself as a global hub for manufacturing and innovation, the need for a future-ready workforce becomes not just desirable but essential. The newly approved scheme paves the way for a transformative journey—one where opportunity meets preparation, and youth are empowered to build a better tomorrow.
