Prime Minister Narendra Modi launched the PM-SETU (Pradhan Mantri Skilling and Employability Transformation through Upgraded ITIs) scheme on October 4, 2025, committing more than ₹62,000 crore to a range of youth-focused initiatives. The centrally sponsored scheme aims to transform 1,000 Government Industrial Training Institutes (ITIs) across India into modern, industry-aligned training institutions. PM-SETU follows a hub-and-spoke model, with 200 hub ITIs linked to 800 spoke ITIs. Each upgraded ITI will be managed through a Special Purpose Vehicle (SPV) in which industry partners hold a 51% stake and the government retains 49%. Anchor Industry Partners will design curricula, set up advanced labs, and support faculty upskilling. The scheme focuses on new-age trades such as Artificial Intelligence, renewable energy, robotics, and advanced manufacturing, aiming to bridge the skills gap and improve employability of India's youth.
PM Modi Launches PM-SETU Scheme to Modernise 1,000 ITIs Worth ₹60,000 Crore
PM Modi launched PM-SETU on October 4, 2025, a ₹60,000 crore scheme to modernise 1,000 ITIs using a hub-and-spoke model with 51% industry ownership via SPVs, focusing on AI, robotics, and renewable energy trades.
Key facts
- PM Modi launched PM-SETU on October 4, 2025 — a ₹60,000 crore scheme for ITI modernisation.
- The scheme will modernise 1,000 Industrial Training Institutes using a hub-and-spoke model.
- Industry will hold 51% ownership in Special Purpose Vehicles managing each ITI cluster.
- Focus trades include AI, robotics, drones, electric vehicles, and renewable energy.
- PM-SETU aims to bridge the gap between vocational training and industry demand.
- SPV-based governance ensures industry-relevant curriculum and placement outcomes.
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What does PM-SETU, launched on October 4, 2025, stand for?
PM-SETU stands for Pradhan Mantri Skilling and Employability Transformation through Upgraded ITIs, launched by PM Modi on Oct 4, 2025.
Source: PMIndia.gov.in
Frequently asked questions
What is PM-SETU and when was it launched?
PM-SETU (Skills and Employment through Technical Upgradation) is a ₹60,000 crore central government scheme launched by PM Modi on October 4, 2025 to modernise 1,000 Industrial Training Institutes (ITIs) across India using a hub-and-spoke governance model.
What is the hub-and-spoke model used in PM-SETU?
Under the hub-and-spoke model, selected ITIs function as 'hubs' with advanced infrastructure and industry partnerships, while surrounding 'spoke' ITIs are connected to and upgraded through the hub. Special Purpose Vehicles (SPVs) manage each ITI cluster, with industry holding 51% ownership to ensure demand-driven curricula.
What trades and skills does PM-SETU prioritise?
PM-SETU focuses on emerging and future-ready trades including Artificial Intelligence, robotics, drone technology, electric vehicles, and renewable energy. These are aligned with India's national priorities in Industry 4.0, green economy, and digital transformation.
Why is 51% industry ownership in the SPV significant for PM-SETU's outcomes?
Industry holding 51% in each SPV gives the private sector a majority say in curriculum design, equipment procurement, and placement targets. This is intended to end the historical mismatch between ITI training and actual employer requirements, improving employability and reducing skill gaps.
How does PM-SETU link to India's broader vocational education policy goals?
PM-SETU builds upon the National Education Policy (NEP) 2020's emphasis on vocational integration and the National Skill Development Mission. It aims to raise the Gross Enrolment Ratio in vocational training, align ITI output with India's manufacturing and services sector needs, and supports the vision of a skilled workforce for a Viksit Bharat by 2047.
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