Centre rolls out PM-SETU to upgrade 1,000 ITIs, boost industry participation

The central government has introduced the PM-SETU (Pradhan Mantri Skilling and Employability Transformation through Upgraded ITIs) project to upgrade 1,000 government Industrial Training Institutes (ITIs) in the entire country, and to improve greatly the cooperation of the industry in the education of the vocational field.

The project will adopt a hub and spoke model with 200 ITIs serving as hubs with high-end infrastructure and modern training facilities, while the 800 spokes will be the peripheral ITIs that will bring skilling access to the districts. On January 19, 2026, Prime Minister Narendra Modi made the announcement considering the Viksit Bharat vision that is aimed at creating a workforce that is future-proof and globally competitive.

Pune consultation to anchor industry participation

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As part of the rollout, the Ministry of Skill Development and Entrepreneurship (MSDE), in partnership with the Maharashtra government, will hold a major industry consultation in Pune on January 19. The event, to be organised at the Yashwantrao Chavan Academy of Development Administration (YASHADA), is aimed at mobilising industry participation and building awareness around the scheme’s industry-led implementation framework.

According to the ministry, more than 50 eligible companies are expected to participate, representing sectors such as construction, textiles, automotive, FMCG, electronics, oil and gas, and renewable energy. MSDE Secretary Debashree Mukherjee will preside over the consultation along with Manisha Verma, additional chief secretary of Maharashtra’s skills, employment, entrepreneurship and innovation department. Officials will also visit ITIs and industries in the region to assess existing training and employment linkages.

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Government-owned, industry-managed ITIs

Under PM-SETU, the ITI's will still be owned by the government but will work hand to mouth with industry partners for management. The model is anticipated to bring about demand-based training, increase the number of apprenticeships, and improve the placements through collaboration with the cluster-based partners from the industries that are the main players.

Officials said the consultation will highlight how PM-SETU creates a structured platform for industry to move beyond periodic engagement and play a sustained role in the skilling ecosystem by participating in institutional governance and decision-making. Through the cluster approach, industry partners will be able to align training programmes with real-time labour market needs, support curriculum and pedagogy upgrades, facilitate faculty upskilling, and strengthen apprenticeship and placement pipelines.

The ministry noted that the model is expected to reduce recruitment costs for industry, improve productivity, and ensure the availability of job-ready talent aligned with industry standards.

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MoUs to formalise partnerships

As part of the Pune consultation, memorandums of understanding will be exchanged to formalise industry-institution partnerships aimed at strengthening vocational training and employability outcomes in Maharashtra. The MoU exchange will include partnerships between the Directorate of Vocational Education and Training (DVET), Government of Maharashtra, and FIAT India, Schneider Electric India, and the Anudip Foundation, as well as between DVET and SDN/Wadhwani.

Preparatory steps are already underway across states, with 29 states and Union Territories identifying initial clusters and 25 states and UTs notifying their State Steering Committees as the scheme progresses towards on-ground implementation.

Officials said PM-SETU is expected to play a key role in modernising India’s vocational education ecosystem by improving institutional governance, upgrading training infrastructure, and aligning skilling initiatives more closely with labour market demand, as India prepares its workforce for emerging growth sectors.