Lok Sabha Question No. 5928 (UNSTARRED), answered on 2026-03-30
Subject: Modernisation of ITIs
Ministry: SKILL DEVELOPMENT AND ENTREPRENEURSHIP
Asked by: Shri Rajesh Verma, Smt. Shambhavi, Dr. D. Purandeswari, Shri Arun Bharti

## GOVERNMENT OF INDIA MINISTRY OF SKILL DEVELOPMENT AND ENTREPRENEURSHIP

## LOK SABHA UNSTARRED QUESTION No. 5928 ANSWERED ON 30.03.2026

## MODERNISATION OF ITIs

5928.  SMT. SHAMBHAVI: SHRI RAJESH VERMA: DR. D. PURANDESWARI: SHRI ARUN BHARTI:

Will  the  Minister  of  SKILL  DEVELOPMENT  AND ENTREPRENEURSHIP be pleased to state:

- (a) whether the Government has launched new schemes to modernise Government Industrial Training Institutes (ITIs) and strengthen the skill development ecosystem, particularly in Bihar and Andhra Pradesh, if so, the details thereof and if not, reasons therefor;
- (b) whether  the  Government  proposes  to  upgrade  ITIs  through  industry-aligned  training, infrastructure  development  and  hub-and-spoke  institutional  models  particularly  in  Samastipur, Khagaria, Jamui and Rajahmundry Lok Sabha Constituencies, if so, the details thereof and if not, the reasons therefor;
- (c) whether new entrepreneurship promotion initiatives have been proposed for students and young professionals, if so, the details thereof and if not, the reasons therefor;
- (d) the total budget allocation made for skill development and entrepreneurship programmes; and
- (e) the  expected  impact  of  these  measures  on  employability,  industry  readiness  and  youth empowerment in the country, State/UT-wise?

## ANSWER

THE  MINISTER  OF  STATE  (INDEPENDENT  CHARGE)  IN  THE  MINISTRY  OF  SKILL DEVELOPMENT AND ENTREPRENEURSHIP

(SHRI JAYANT CHAUDHARY)

- (a)  &  (b)      The  Government  has  launched  Pradhan  Mantri  Skilling  and  Employability Transformation through Upgraded ITIs (PM-SETU) scheme to enhance the overall quality and relevance of vocational training in the country. The Scheme has a total outlay of Rs. 60,000 crore (Central Share -Rs. 30,000 crore, State Share -Rs. 20,000 crore and Industry Share -Rs. 10,000 crore).

The scheme comprises of two components:

- i.     Component I -Upgradation of 1,000 Government ITIs (200 Hub ITIs and 800 Spoke ITIs) in a Hub and Spoke model wherein upgradation includes smart classrooms, modern labs, digital content, and new courses aligned to industry needs.
- ii.    Component II -Capacity Augmentation of five NSTIs located in Bhubaneswar, Chennai, Hyderabad, Kanpur, and Ludhiana, including setting-up sector-specific National Centres of  Excellence  for  skilling,  with  focus  on  advanced  training  of  trainers  with  global partnership.

The selection of ITIs under PM-SETU scheme is led by the respective State/UT Governments in consultation  with  industry,  ensuring  alignment  with  emerging  skill  needs  and  local  industrial potential. Accordingly, States/UTs  are required to submit proposals for upgradation in collaboration with industry partners. Ministry of Skill Development and Entrepreneurship (MSDE) has constituted National Steering Committee (NSC) chaired by Secretary, MSDE, an apex body to provide the overall vision for the scheme, facilitate broad policy direction, finalize operational guidelines, monitor, and conduct course correction.  32 States/UTs have constituted their State Steering Committee (SSC) led by Chief Secretary of the State/UT, an apex body at the State/UT level for guiding and overseeing the implementation of scheme. 19 States/UTs have floated their proposal for inviting the interest of industry. For selection of the industry partner to form Special Purpose Vehicle (SPV), a Strategic Investment Plan (SIP) by industry is required to be submitted in response to the Request for Proposal (RFP).

The  Government  of  Bihar  has  identified  two  (2)  clusters  for  pilot  phase  under  the  PM-SETU scheme, with Hub ITIs located in the districts of Patna and Darbhanga. Similarly, the State of Andhra Pradesh has identified one (1) cluster for pilot phase under the scheme, with the Hub ITI located  in  the  district  of  Visakhapatnam.  However,  the  Hub-and-Spoke  ITI  clusters  would  be finalized for financial assistance on the basis of the response of industry partners for the proposed clusters along with approval of SIP by NSC.

(c)          The  Ministry  of  Skill  Development  and  Entrepreneurship  (MSDE)  has  taken  various initiatives to promote  entrepreneurship in the country. During the year 2025, multiple entrepreneurship  focused  initiatives  were  implemented  with  the  objective  of  promoting  selfemployment, enterprise creation and sustainable livelihoods, particularly among youth, women, SHGs  and  aspiring  micro  entrepreneurs.  These  initiatives  were  aligned  with  the  Skill  India Mission  under  Pradhan  Mantri  Kaushal  Vikas  Yojana  (PMKVY  4.0),  Pradhan  Mantri  Janjati Adivasi  Nyaya  Maha  Abhiyan  (PM  JANMAN),  Dharti  Aaba  Janjatiya  Gram  Utkarsh  Abhiyan (DAJGUA), and PM Surya Ghar Muft Bijli Yojana.

The Ministry through its autonomous organizations, namely, National Institute for Entrepreneurship and  Small Business  Development  (NIESBUD)  and  Indian  Institute of Entrepreneurship  (IIE)  has  implemented  various  Entrepreneurship  Development  Programmes (EDPs)  and  Entrepreneurship  and  Skill  Development  Programmes  (ESDPs)  under  various schemes to  promote entrepreneurship  amongst  all  sections  of  the  society.  These  EDPs  and ESDPs are designed to impart entrepreneurial, financial and managerial skills and also to offer post-training  support  through  mentorship,  handholding,  and  access  to  credit/finance,  market linkages and incubation facilities.

Under Pradhan Mantri Kaushal Vikas Yojana (PMKVY) 4.0, the emphasis is on empowering trained candidates to pursue diverse career pathways by providing appropriate orientation, with a strong focus on entrepreneurship and livelihood creation through On-the-Job Training (OJT) embedded  industry-relevant  skill  courses.  Additionally,  as  part  of  the  ITI  syllabus  under  the Craftsmen Training Scheme (CTS), 15 hours of entrepreneurship content are embedded in the first year and 12 hours in the second year within the Employability Skills module for all courses.

Also,  Skill  India  Digital  Hub  (SIDH)  platform  has  been  launched  as  a  one-stop  platform  that integrates  skilling,  education,  employment,  and  entrepreneurship  ecosystems  to  provide  a lifelong array of services targeting a wide range of stakeholders. Details of the trained candidates are available on SIDH portal for connecting with potential employers. Through SIDH, candidates can have access to jobs, apprenticeship opportunities and other facilities,  including  loans  for entrepreneurship.

Further PM-SETU scheme proposes the upgradation of ITIs through industry-led Special Purpose Vehicles  (SPVs),  which  will  lead  to  implementation  and  be  empowered  to  propose  necessary interventions relating to curriculum redesign, training delivery models, infrastructure upgradation, industry exposure, and placement or self-employment facilitation, in alignment with local industry needs and scheme guidelines.

(d)            The  total  Budget  Estimate  (BE)  allocation  for  Skill  Development  and  Entrepreneurship programmes under MSDE for FY 2025-26 is Rs. 5,749.90 Crore. This comprises under the Central Sector Scheme, the Skill India Programme with a BE of Rs. 2,700.00 Crore; and under Centrally Sponsored Schemes, the Strengthening of Infrastructure for Institutional Training (SIIT) with a BE of Rs. 49.90 Crore, and the PM-SETU scheme with a BE of Rs. 3,000.00 Crore.

(e)                The  impact  of  the  Government's  skill  development  interventions  is  evidenced  by independent third-party evaluations conducted by the Arun Jaitley National Institute of Financial Management (AJNIFM), an autonomous institution of the Ministry of Finance, Government of India.

The key takeaways from the evaluation is summarised below:

- I. Under PMKVY 4.0, the combined share of employed and self-employed Short-Term Training (STT) respondents increased from 26.6% prior to training to 45.4% after PMKVY training, reflecting  an  18.8  percentage  point  increase  in  employment  outcomes.  Income-related improvements  were  also  measurable,  with  41.4%  of  STT  candidates  and  48.9%  of  RPL candidates reporting an increase in income following training and certification. PMKVY 4.0 has  significantly  expanded  access  to  formal  skill  training  and  generated  measurable improvements  in  skill  confidence,  employment  participation,  and  income  outcomes  for  a substantial proportion of beneficiaries.
- II. The Jan Shikshan Sansthan (JSS) Scheme has demonstrated strong livelihood outcomes, with 33.94 lakh individuals enrolled, of whom 32 lakh were trained and 31.52 lakh certified, reflecting  an  overall  success  rate  of  99  percent.  Women  constituted  82  percent  of  total participants  and  73  percent  of  beneficiaries  belonged  to  marginalised  sections,  including SC/ST (36%) and OBC (37%). The livelihood impact has been particularly noteworthy: 90 percent  of  alumni  utilised  acquired  skills  for  income  generation;  82  percent  became economically engaged within six months of training; 60 percent of previously non-earning individuals  started to earn post-training;  and  the average  monthly income of beneficiaries recorded a four-fold increase.
- III. Under  the  Pradhan  Mantri  National  Apprenticeship  Promotion  Scheme  (PMNAPS-2),  the scheme engaged 34.69 lakh apprentices against a cumulative target of 46 lakh, translating into  an  overall  achievement  of  approximately  75  percent.  Cumulative  DBT  disbursement exceeded Rs. 1,094 crore, with annual disbursement rising from Rs. 327.2 crore in FY 202324 to Rs. 500.16 crore in FY 2024-25, reflecting growing institutional capacity and financial transparency. The ITI Tracer Study published by MSDE further indicates that 63.5% of total ITI pass-outs secured employment, of which 6.7% opted for self-employment.

Further, the Government has taken various steps to strengthen industry linkage and placement outcomes. The courses under PMKVY 4.0 are designed by industry-led bodies addressing the requirement of emerging sectors. Training has been imparted in future ready job-roles addressing the requirement of Industry 4.0, emerging sectors like Drone, Artificial Intelligence (AI), Robotics, Mechatronics,  etc.  District  Skill  Development  Plans  (DSDPs)  are  prepared  by  District  Skill Committees (DSCs) to analyze skill gaps and map industry demand at the district level, ensuring that PMKVY training courses are aligned with local employment needs.

Further, to enable the opportunities for employment, Skill India Digital Hub (SIDH) platform has been  launched  as  a  one-stop  platform  that  integrates  skilling,  education,  employment,  and entrepreneurship  ecosystems  to  provide  a  lifelong  array  of  services  targeting  a  wide  range  of stakeholders. The details of the trained candidates are available on SIDH portal for connecting with potential employers. Additionally, OJT has been made an inherent component of the PMKVY. To ensure active interaction between employers and candidates, Kaushal Mahotsavs are organized across the country.

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