13 October, 2025
PM-SETU Scheme
Thu 09 Oct, 2025
Context:
In a strategic push to modernize India’s vocational education and strengthen industry-aligned skills training, Prime Minister Narendra Modi has launched PM-SETU (Prime Minister’s Scheme for Empowerment through Technology Upgradation). This ambitious scheme is set to transform government-run Industrial Training Institutes (ITIs) and revolutionize India’s skilling landscape.
Objectives:
- Upgrade outdated training facilities in ITIs and align them with global industry demands.
- Promote a “Government-owned, Industry-managed” model to ensure relevance and practical skills.
- Bridge the gap between theoretical learning and real-world employment needs.
- Prepare India's youth to meet 21st-century skill challenges globally and domestically.
Key Features:
Feature | Details |
Hub-and-Spoke Model | 200 ITIs will serve as Hubs, each connected to 4 Spoke ITIs (total 800). |
Modern Infrastructure | Includes smart classrooms, advanced machinery, AI labs, digital libraries, and innovation centers. |
Industry Collaboration | Each ITI cluster will be anchored by industry partners like CII, FICCI, or regional chambers for internships, placements, and mentorship. |
Skill Innovation Ecosystem | Hubs will function as training-of-trainers centers, and start-up incubation hubs. |
Sectoral Focus | Emphasis on manufacturing, agriculture, hospitality, and emerging technologies like AI, robotics, EV, green energy. |
Funding Structure | ₹60,000 crore over 2025–2028, jointly funded by Centre and States. |
Significance:
- Strengthening Vocational Education: With over 70% of India's workforce still in the informal sector, PM-SETU will empower youth with formal technical skills.
- Boosting Employment: Modern training and real-time industry exposure will increase employability and entrepreneurship.
- Catalyst for Industry 4.0: Digital upgradation of ITIs will help India gear up for the Fourth Industrial Revolution.
- Balanced Regional Growth: ITIs in both urban and rural India will benefit, helping reduce urban migration.
- Global Competitiveness: PM-SETU will align India’s workforce to international skill standards, helping in global labor mobility.
Challenges Ahead:
- Ensuring effective execution and utilization of allocated funds at the grassroots level.
- Bridging the urban-rural digital divide.
- Building capacity among trainers and administrators in ITIs to adopt new pedagogy.
- Need for continuous industry feedback to remain updated with evolving job demands.
population, driving economic growth and social inclusion.
Similar Government Skill Development Schemes
Scheme Name | Year Launched | Nodal Ministry |
Pradhan Mantri Kaushal Vikas Yojana (PMKVY) | 2015 | Ministry of Skill Development & Entrepreneurship |
Skill India Mission | 2015 | Ministry of Skill Development & Entrepreneurship |
SANKALP (Skill Acquisition & Knowledge Awareness for Livelihood Promotion) | 2017 | MSDE |
STRIVE (Skills Strengthening for Industrial Value Enhancement) | 2017 | MSDE |
Udaan Scheme | 2011 | MSDE & NSDC |
Deen Dayal Upadhyaya Grameen Kaushalya Yojana | 2014 | Ministry of Rural Development |
National Apprenticeship Promotion Scheme (NAPS) | 2016 | MSDE |
PM-DAKSH Yojana | 2020 | Ministry of Social Justice & Empowerment |