MSDE Invites Industry to Lead PM-SETU, Transforming ITIs for Future Skills

In return, companies gain a dependable pipeline of skilled workers and apprentices, aligning workforce development with business expansion.

 

In a major leap toward modernising India’s skill ecosystem, the Ministry of Skill Development and Entrepreneurship (MSDE) has formally invited industry partners to participate in the PM-SETU (Prime Minister Skilling and Employability Transformation through Upgraded ITIs) scheme. This marks a structural shift from a government-driven skilling system to one led by industry, ensuring that vocational training aligns directly with evolving market needs.

In partnership with State/UT governments and the Directorate General of Training (DGT), MSDE has issued an Expression of Interest (EOI) calling for Anchor Industry Partners (AIPs) to upgrade premier skill institutions. States such as Karnataka, Gujarat, Assam, and Chandigarh have already released EOIs for transforming select Industrial Training Institutes.

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PM-SETU: A ₹60,000-Crore Overhaul of India’s Training Infrastructure

Approved by the Union Cabinet in May 2025 and launched by the Prime Minister on October 4, 2025, PM-SETU aims to bridge long-standing gaps in the ITI ecosystem—particularly outdated curricula, limited industry exposure, and obsolete machinery.

Key Features of the Scheme

• ₹60,000 crore total budget

• 1,000 Government ITIs to be upgraded

• Hub-and-Spoke Model:

  • 200 hub ITIs equipped with advanced facilities

  • Each hub will support about four spoke ITIs

• Five NSTIs—Bhubaneshwar, Chennai, Hyderabad, Kanpur, Ludhiana—to be upgraded into world-class Centres of Excellence

This structure ensures widespread access to modern training while consolidating high-end learning at strategic hubs.

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Industry-Led Governance: A Game-Changing Reform

A defining element of PM-SETU is its industry-first governance model. Each upgraded ITI will be operated through a Special Purpose Vehicle (SPV) with:

• 51% ownership by industry partners

• 49% ownership by the government

• Up to 83% government co-funding for industry co-investments

This approach gives companies operational control while enabling strong public-sector support—ensuring that training remains current, flexible, and aligned with industry standards.

With sectors such as advanced manufacturing, electronics, mobility, green energy, and logistics in focus, the scheme aims to cultivate a skilled workforce tailored for new-age industries.

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Anchor Industry Partners: Central to India’s Skilling Revolution

Under the PM-SETU framework, Anchor Industry Partners will play a transformative role by:

• Designing job-linked, market-relevant curricula

• Establishing high-tech laboratories, simulation centres, and digital learning spaces

• Upskilling ITI faculty through industry immersion programs

• Setting up innovation hubs, incubation centres, and apprenticeship pathways

In return, companies gain a dependable pipeline of skilled workers and apprentices, aligning workforce development with business expansion. This also supports CSR and ESG goals by contributing directly to national skilling initiatives.

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Strengthening India’s Workforce for the Future

As States/UTs accelerate the EOI process, PM-SETU is poised to become one of India’s most ambitious workforce reforms. By placing industry at the heart of training delivery, the scheme aims to make vocational education globally competitive, technologically advanced, and employment-driven.

The initiative signals a new era in India’s skilling ecosystem—one that connects training, technology, and industry to build a workforce ready for the jobs of tomorrow.