ADB Approves $109.97 Million Loan to Transform Skills Development in Gujarat

In a major push toward strengthening India’s workforce capacity, the Asian Development Bank (ADB) has approved a $109.97 million results-based loan to support Gujarat’s efforts in advanced technical and vocational education and training (TVET). This initiative, executed through the Gujarat Skills Development Program, aims to create a globally competitive, inclusive, and technologically equipped workforce that meets the demands of fast-evolving industries such as automotive, logistics, IT, healthcare, and renewable energy.

Why in News?

On 13 June 2025, ADB formally approved a $109.97 million loan for Gujarat. The loan supports the state’s Labor, Skill Development and Employment Department in partnership with Kaushalya: The Skill University (KSU). The move is part of a larger plan to future-proof India’s industrial workforce and promote inclusive growth aligned with NEP 2020 and the Gujarat Skills Development Plan (2025–2030).

Objectives and Scope

  • Equip youth with industry-aligned advanced skills for high-growth sectors.
  • Enhance governance and institutional capacity of the TVET system.
  • Establish a scalable and replicable skilling model across Indian states.

Key Interventions Under the Program

  • Upgrade 11 mega Industrial Training Institutes (ITIs).
  • Establish Centers of Excellence for advanced skilling.
  • Implement a hub-and-spoke model anchored by KSU, linking private training partners.
  • Design industry-integrated courses in collaboration with leading sectors.

High-Priority Sectors Covered

  • Logistics
  • Automotive
  • Advanced Manufacturing
  • Information Technology
  • Healthcare
  • Renewable Energy
  • Agri-tech

Inclusion & Gender Empowerment

  • Increase female enrollment in engineering and tech disciplines.
  • Train 175,000 individuals from disadvantaged backgrounds.
  • At least 60,000 students to graduate with advanced technical skills by 2030.

Results-Based Lending (RBL) Modality

Funds linked to measurable outcomes, such as,

  • Enhanced employability of students.
  • Stronger governance at KSU.
  • Partnerships with global certifying bodies.
  • Upgraded faculty quality and training content.

Sustainability and Climate Resilience

  • Integration of climate-resilient and green building features.
  • Supports Gujarat’s broader goals of environment-friendly infrastructure and inclusive growth.

About ADB

  • Founded: 1966
  • Ownership: 69 member countries (50 from Asia-Pacific)
  • Mission: Sustainable, inclusive, resilient growth across Asia and the Pacific
  • Tools: Strategic financing, partnerships, and innovation-driven development
Summary/Static Details
Why in the news? ADB Approves $109.97 Million Loan to Transform Skills Development in Gujarat
Total ADB Loan $109.97 million
Program Name Gujarat Skills Development Program
Executing Agencies Labor, Skill Development and Employment Department + Kaushalya Skill University
Target Sectors Logistics, Automotive, IT, Renewable Energy, Healthcare, Agri-tech
Targeted Beneficiaries 175,000 disadvantaged individuals; 60,000 graduates with advanced skills
Institutional Upgrades 11 Mega ITIs, Centers of Excellence, Hub-and-Spoke training network
Gender & Inclusion Focus Boost female participation in engineering and frontier technologies

Shivam

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