National Scheme Launched to Transform ITIs and Train 20 Lakh Youth in 5 Years

In a significant move to transform the vocational education landscape, the Union Cabinet, chaired by Prime Minister Narendra Modi, has approved the National Scheme for Industrial Training Institute (ITI) Upgradation and Setting up of Five National Centres of Excellence for Skilling. With a financial outlay of ₹60,000 crore, this centrally sponsored scheme will revamp 1,000 ITIs across India and establish five top-tier skilling centres aimed at bridging the gap between industry demand and workforce capabilities.

Why in News?

On May 7, 2025, the Cabinet approved a major scheme to boost skilling infrastructure and education in India. This includes upgrading 1,000 government ITIs and creating five National Centres of Excellence in cities like Chennai, Ludhiana, Kanpur, Bhubaneswar, and Hyderabad. The announcement comes in line with the Budget 2024–25 and Budget 2025–26 and reinforces India’s vision for “Viksit Bharat” by 2047.

Objectives

• Transform existing ITIs into industry-aligned, government-owned, industry-managed skill institutes.
• Address infrastructure gaps, introduce new-age trades, and make vocational training aspirational.
• Create a skilled workforce to support India’s global manufacturing and innovation goals.

Scheme Overview

• Name: National Scheme for ITI Upgradation and National Centres of Excellence
• Outlay: ₹60,000 crore over five years
• Central Share: ₹30,000 crore
• State Share: ₹20,000 crore
• Industry Share: ₹10,000 crore
• 50% of the Central Share to be co-financed by ADB and World Bank
• Duration: 5 years
• Beneficiaries: 20 lakh youth to be skilled

Major Components

• Upgrade 1,000 Government ITIs under a hub-and-spoke model.
• Introduce industry-aligned revamped trades/courses.

Set up 5 National Centres of Excellence for Skilling at,

• Chennai
• Ludhiana
• Kanpur
• Hyderabad
• Bhubaneswar
• Modernize five National Skill Training Institutes (NSTIs).
• Provide training to 50,000 trainers (both pre-service and in-service).

Implementation Model

• Special Purpose Vehicle (SPV) approach for sustained industry partnership.
• Flexibility in fund allocation based on individual ITI’s infrastructure and trade needs.

Significance and Impact

• Supports Viksit Bharat@2047 goal with skilling as a central driver.
• Enhances industry-academia linkages for better employment outcomes.
• Focus on high-growth sectors like electronics, renewable energy, and automotive.
• Encourages MSME participation by supplying ready skilled manpower.
• Aims to change the perception of vocational training from low-prestige to aspirational.

Background

• ITIs have been central to vocational training since the 1950s.
• Over 14,615 ITIs exist today with 14.4 lakh enrolments.
• Despite expansion, they lag behind in modern infrastructure and industry relevance.
• Previous schemes provided insufficient funding for complete transformation.

Summary/Static	Details
Why in the news?	National Scheme Launched to Transform ITIs and Train 20 Lakh Youth in 5 Years
Scheme Name	National Scheme for ITI Upgradation and Centres of Excellence for Skilling
Financial Outlay	₹60,000 crore (Central ₹30K cr, State ₹20K cr, Industry ₹10K cr)
Coverage	1,000 Government ITIs + 5 National Centres of Excellence
Duration	5 years (2025–26 to 2029–30)
Target Beneficiaries	20 lakh youth, 50,000 trainers
NSTI Cities	Chennai, Ludhiana, Kanpur, Hyderabad, Bhubaneswar
Implementation Model	Industry-led SPV model with World Bank & ADB support