- Why in news
- On 3 October 2026, PIB marked PM-SETU's first anniversary (4 October 2026), reporting 850 ITIs identified and Strategic Investment Plans for 14 ITI clusters approved at ₹3,446 crore.
- What it is
- PM-SETU is a ₹60,000 crore centrally backed scheme launched on 4 October 2025 to modernise Government ITIs. It uses a Hub-and-Spoke model and industry-led governance through Special Purpose Vehicles. It also upgrades five National Skill Training Institutes.
- Outlay
- Total ₹60,000 crore: Centre ₹30,000 crore, States ₹20,000 crore, industry ₹10,000 crore.
- Component I
- 1,000 Government ITIs: 200 Hubs and 800 Spokes, with about four Spokes per Hub.
- Component II
- Capacity augmentation of 5 NSTIs at Bhubaneswar, Chennai, Hyderabad, Kanpur and Ludhiana, with National Centres of Excellence.
- SPV ownership
- Anchor Industry Partner holds 51%; Centre and State hold 24.5% each.
- Governance
- A National Steering Committee chaired by the Secretary, MSDE, gives overall direction.
- ITI control
- ITIs are under State Governments and UT administrations; DGT under MSDE is the apex body for vocational training.
- Who chaired
- The meeting was chaired by the Secretary, Ministry of Skill Development and Entrepreneurship (MSDE). It was attended by the DG-DGT, state governments, multilateral development partners and industry.
- Strategic Investment Plans
- SIPs with a combined outlay of ₹1,237.58 crore were approved. Industry names act as Anchor Industry Partners for the clusters.
- SIP route
- SIPs are recommended by the State Steering Committees before the national committee approves them.
Don’t confuse with ITI vs NSTI: ITIs offer CTS trades and are run by States; NSTIs are national institutes under DGT/MSDE, also training instructors.
Don’t confuse with Hub vs Spoke ITI: Hubs have innovation centres, production units and placement services; Spokes connect learners to cluster resources.
Don’t confuse with PM-SETU vs Skill India Programme: PM-SETU upgrades Government ITIs through hubs, spokes and industry anchors. The Skill India Programme is the broader umbrella covering PMKVY, Jan Shikshan Sansthan and other schemes.
Schemes: 52 Prelims questions since 2013, 10 in Prelims 2026 alone. They test features, the period and who funds it. In Mains, 33 news-triggered questions, mostly GS3.
Why it matters
- Makes vocational training industry-led, reducing the skills mismatch for youth employability.
- Shares cost among Centre, States and industry, drawing private investment into public training.
- New-age courses in AI, EVs and semiconductors align skills with emerging sectors.
- Industry-anchored upgrading can align ITI training with real job demand and improve employability.
- Cluster-based design pools resources, so smaller ITIs gain from the hub's upgraded facilities.
Problems
- ITIs are a State subject, so progress depends on State capacity and readiness; only some States have begun inviting industry.
- Anchor-industry control of SPVs may skew courses to partner needs and raise accountability and equity concerns.
- Industry readiness and state capacity vary, so rollout may be uneven across states.
- Sustaining industry commitment and keeping curricula current needs strong governance.
Way forward
- Publish outcome data such as placements and wages alongside input numbers.
- Build State capacity and trainer quality, and safeguard public interest in SPV governance.
- Track placement and learning outcomes by cluster and publish them.
- Simplify approvals and bring in more PSUs and industry partners, as the committee has decided.
Put in your answer
New-age courses: DGT introduced 32 new-age CTS courses, including AI, cyber security, drones and green hydrogen.
Global partners: MoUs with Singapore (Chennai), France (Kanpur), Australia (Bhubaneswar); Germany intent for Hyderabad.
- 2021Mains GS2 · Q7Comment on strengthening 'Earn while you learn' for vocational education and training.
- 2016Mains GS2 · Q16Measures to make manpower educated, skilled and employable for demographic dividend.
- 2015Mains GS3 · Q8Discuss how Make in India success depends on Skill India.
- 2023Mains GS2 · Q18Analyse linkages between education, skill and employment, given skill programmes' success.
- 2022Mains GS3 · Q1Why PPP is required in infrastructure; examine PPP in railway station redevelopment.
- 2008Prelims Q15Which scheme provides training and skills to women in trades?
- 2017Prelims Q61Which statements on NSQF certification and vocational-general mobility are correct?
- 2017Prelims Q3What is Recognition of Prior Learning Scheme mentioned in news for?
UPSC’s own questions that come close to this issue, from our Prelims and Mains banks.
Prelims practice · Statements
Ours, not from a UPSC paper
Consider the following statements:
- 1.Under PM-SETU, the Centre contributes half of the total outlay of ₹60,000 crore.
- 2.In the proposed SPV structure for upgraded ITI clusters under PM-SETU, the Anchor Industry Partner holds the majority 51% ownership.
- 3.Government and Private ITIs in India are under the administrative and financial control of the Directorate General of Training.
Which of the statements given above is/are correct?
True or false?
1 of 7
Statements the way Prelims prints them. Say first, then see the fact.
1.PM-SETU has a total outlay of ₹60,000 crore, of which the Centre contributes half.
True. Centre ₹30,000 crore of ₹60,000 crore.
2.Under PM-SETU, Government ITIs are upgraded through a Hub-and-Spoke model with 200 Hubs and 800 Spokes.
True. 200 Hub and 800 Spoke ITIs.
3.In the proposed SPV structure, the Central Government holds the majority 51% ownership.
False. The Anchor Industry Partner holds 51%; Centre and State 24.5% each.
4.The National Steering Committee of PM-SETU is chaired by the Secretary, Ministry of Skill Development and Entrepreneurship.
True. The NSC is chaired by the MSDE Secretary.
5.Component II of PM-SETU covers the upgradation of five National Skill Training Institutes, including those at Kanpur and Ludhiana.
True. NSTIs at Bhubaneswar, Chennai, Hyderabad, Kanpur and Ludhiana.
6.Under the Craftsmen Training Scheme, course duration ranges from six months to two years depending on the trade.
True. Six months to two years.
7.The National Steering Committee has approved Strategic Investment Plans for 14 ITI clusters with a total investment of ₹3,446 crore.
True. 14 clusters, ₹3,446 crore.
Written by us from the release, not by UPSC; checked by a second model.
Mains practice
10 marks · 150 words
On its first anniversary, PM-SETU reports 850 ITIs identified and Strategic Investment Plans approved for 14 ITI clusters. Discuss the main provisions of the scheme and examine the challenges in making Government ITIs industry-led and employment-oriented.
Worth revising until Prelims 2028: most news questions come within two years of the event.