The Union Cabinet, chaired by Prime Minister Shri Narendra Modi, has recently approved a significant scheme aimed at the upgradation of In...
The Union Cabinet, chaired by Prime Minister Shri Narendra Modi, has recently approved a significant scheme aimed at the upgradation of Industrial Training Institutes (ITIs) across India and the establishment of National Centres of Excellence for Skilling. This decision was made on Wednesday, May 7, 2025.
Here's a detailed overview of the approved scheme:
Name of the Scheme: National Scheme for Industrial Training Institute (ITI) Upgradation and Setting up of five (5) National Centres of Excellence for Skilling.
Implementing Body: To be implemented as a Centrally Sponsored Scheme.
Financial Outlay: A total of ₹60,000 crore has been allocated for this scheme over a period of five years. The funding will be shared as follows:
* Central Government Share: ₹30,000 crore
* State Government Share: ₹20,000 crore
* Industry Contribution: ₹10,000 crore
* Notably, 50% of the Central Government's share will be co-financed equally by the World Bank and the Asian Development Bank (ADB).
Objectives and Key Components:
* Upgradation of 1,000 Government ITIs: These ITIs will be upgraded following a hub-and-spoke model. This means selected well-performing ITIs (hubs) will mentor and support other ITIs (spokes) in their vicinity. The focus will be on revamping trades and courses to align them with current and future industry needs, particularly in high-growth sectors like electronics, automotive, and renewable energy.
* Establishment of Five National Centres of Excellence (NCOE) for Skilling: These centres will be set up within existing National Skill Training Institutes (NSTIs) located in:
* Bhubaneswar
* Chennai
* Hyderabad
* Kanpur
* Ludhiana
The NCOEs will focus on training trainers and driving innovation in vocational education and training. They will also enhance the quality and relevance of training programs.
* Capacity Augmentation of NSTIs: The scheme includes measures to enhance the overall capacity and infrastructure of the five identified NSTIs.
* Industry Integration: A significant aspect of this scheme is to foster deep and sustained collaboration between ITIs and industries. This will involve industry partners in the planning, management, and delivery of training programs to ensure that the skills imparted are directly relevant to employment opportunities.
* Industry-led Special Purpose Vehicle (SPV) Model: The implementation of the scheme will follow an industry-led SPV model. This approach aims for outcome-driven results and marks a departure from previous, less integrated efforts to improve the ITI ecosystem.
* Focus on Modern Trades: The upgraded ITIs will introduce modern, capital-intensive trades to equip students with skills for advanced manufacturing and technology-driven industries. Examples include robotics, artificial intelligence, 3D printing, and electric vehicle maintenance.
* Training of Trainers (ToT): The scheme includes provisions for upgrading the skills of ITI faculty through improved ToT facilities at the NSTIs and by providing pre-service and in-service training to approximately 50,000 trainers.
* Skilling Target: The scheme aims to skill approximately 2 million youth over the five-year period.
Rationale and Expected Outcomes:
* Bridging the Skill Gap: The scheme directly addresses the critical skill-employability gap across various sectors and aims to meet the increasing demand for skilled manpower as India progresses towards becoming a global manufacturing and innovation hub.
* Enhanced Employability: By aligning training with industry needs, the scheme aims to improve the employability of ITI graduates and create a skilled workforce ready for the demands of modern industries.
* Revamping Vocational Education: The initiative seeks to transform the perception of ITIs, making them aspirational institutions of choice for vocational training rather than a last resort.
* Meeting Industry Needs: The focus on industry collaboration will help ensure that industries, including Micro, Small, and Medium Enterprises (MSMEs), have access to a readily available pool of skilled workers.
* Infrastructure Development: The substantial financial outlay will support the modernization of ITI infrastructure, including the development of smart classrooms, digital labs, and advanced workshops.
* Curriculum Enhancement: The scheme will facilitate the revision and updating of ITI curricula to incorporate the latest industry trends and technological advancements.
In summary, the Cabinet approval of the National Scheme for ITI Upgradation in May 2025 represents a significant government commitment to revitalize vocational education in India. By focusing on industry alignment, infrastructure improvement, and the creation of Centres of Excellence, the scheme aims to empower youth with relevant skills and support the nation's industrial growth.
