- Why in news
- On 9 March 2026, the Minister of State (Independent Charge) for Skill Development told the Lok Sabha that the Cabinet has approved PM SETU, a scheme to upgrade ITIs and NSTIs.
- What it is
- PM SETU (Pradhan Mantri Skilling and Employability Transformation through Upgraded ITIs) is a scheme of the Ministry of Skill Development and Entrepreneurship. It aims to raise the quality and industry relevance of vocational training in Government ITIs and National Skill Training Institutes. It uses industry-led governance to link training with jobs.
- Component I
- Upgrades 1,000 Government ITIs in a hub and spoke model: 200 Hub ITIs and 800 Spoke ITIs.
- Component II
- Capacity augmentation of five NSTIs (Bhubaneswar, Chennai, Hyderabad, Kanpur, Ludhiana), with sector-specific National Centres of Excellence and training of trainers.
- Industry-led SPVs
- Industry-led Special Purpose Vehicles lead the upgradation and can propose curriculum, delivery, infrastructure, exposure and placement changes.
- Governance
- A National Steering Committee gives policy guidance; State Steering Committees chaired by the Chief Secretary monitor progress in states/UTs.
- Employability Skills
- A mandatory 120 hours of Employability Skills training for one-year ITI courses, covering entrepreneurship, financial literacy and digital literacy.
Don’t confuse with ITI vs NSTI: ITIs are the training institutes being upgraded in Component I (1,000 Government ITIs). NSTIs are national institutes for training of trainers, with five covered in Component II.
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
- Links vocational training to industry demand, which can improve employability.
- Strengthens trainer quality through NSTIs.
Problems
- Sustaining industry participation in SPVs and keeping curricula current.
- Uneven state capacity and the need for regular monitoring.
Way forward
- Use third-party impact assessments to track placement outcomes.
- Keep state steering committees active and link courses to local industry needs.
Put in your answer
Scale of upgradation: 1,000 Government ITIs (200 Hub, 800 Spoke) and five NSTIs under PM SETU.
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UPSC’s own questions that come close to this issue, from our Prelims and Mains banks.
Prelims practice · Single answer
Ours, not from a UPSC paper
Consider the following statements about the PM SETU scheme (Pradhan Mantri Skilling and Employability Transformation through Upgraded ITIs):
Which one of the following is correct?
True or false?
1 of 7
Statements the way Prelims prints them. Say first, then see the fact.
1.PM SETU provides for upgrading 1,000 Government ITIs using a hub and spoke model.
True. 1,000 ITIs: 200 hubs and 800 spokes.
2.Under PM SETU, the 1,000 ITIs are divided into 800 Hub ITIs and 200 Spoke ITIs.
False. There are 200 Hub ITIs and 800 Spoke ITIs.
3.Component II of the scheme covers five National Skill Training Institutes, including those at Kanpur and Ludhiana.
True. NSTIs at Bhubaneswar, Chennai, Hyderabad, Kanpur and Ludhiana are covered.
4.The upgradation under the scheme is to be led by industry-led Special Purpose Vehicles.
True. Industry-led SPVs lead the upgradation.
5.State Steering Committees under the scheme are chaired by the State Skill Development Minister.
False. They are chaired by the Chief Secretary of the State/UT.
6.The NSTIs under the scheme are to focus on advanced training of trainers, with sector-specific National Centres of Excellence.
True. Component II sets up sector-specific National Centres of Excellence focused on training of trainers.
7.The scheme makes 120 hours of Employability Skills training mandatory for all ITI courses of any duration, covering entrepreneurship and financial literacy.
False. The 120 hours is mandatory for one-year courses.
Written by us from the release, not by UPSC; checked by a second model.
Worth revising until Prelims 2027: most news questions come within two years of the event.