PM-SETU at one year: 850 ITIs identified, 14 clusters approved
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PM-SETU, launched on 4 October 2025 to upgrade 1,000 Government ITIs through a hub-and-spoke model, has identified 850 ITIs and approved 14 ITI clusters worth ₹3446 crore in its first year. The scheme has a ₹60,000 crore outlay shared by the Centre, States and industry, and also upgrades five NSTIs.
- Full name
- Pradhan Mantri Skilling and Employability Transformation through Upgraded ITIs
- Launched
- 4 Oct 2025
- Outlay
- ₹60,000 crore (Centre 30,000; States 20,000; industry 10,000)
- Target
- 1,000 Govt ITIs: 200 hubs, 800 spokes
- Year-one
- 850 ITIs identified (172 hubs, 678 spokes)
- Clusters approved
- 14, worth ₹3446 crore
PM-SETU: what happened?
The Ministry of Skill Development and Entrepreneurship released a one-year note on PM-SETU on 3 October 2026. It shows the scheme moving from planning to approved industry-led clusters.
- PIB’s one-year backgrounder on PM-SETU reports identification of 850 ITIs and approval of 14 ITI clusters [PIB].
How have ITIs grown?
- ITIs (Government and private) rose from 9,776 in 2014 to 13,888 in 2026, up 42%.
- Enrolment rose from 9.51 lakh in 2014-15 to 14.70 lakh in 2025-26, up 54%.
- ITIs run under the Craftsmen Training Scheme; courses last six months to two years.
- The Directorate General of Training (DGT), MSDE, sets norms, curriculum, affiliation, instructor training and trade testing.
- ITIs are under the administrative and financial control of States and UTs.
What are the two components?
- Component I: 1,000 Government ITIs; each hub links with about four spokes and offers innovation centres, trainer training, production units and placement.
- Component II: capacity augmentation of five NSTIs at Bhubaneswar, Chennai, Hyderabad, Kanpur and Ludhiana, with National Centres of Excellence and global partnerships.
How is an ITI cluster SPV owned?
| Partner | Share |
|---|---|
| Anchor Industry Partner | 51% |
| Centre | 24.5% |
| State Government | 24.5% |
What has PM-SETU achieved in one year?
| Indicator | Status |
|---|---|
| ITIs identified | 850 (172 hubs, 678 spokes) |
| States/UTs with clusters and budget heads | 36 |
| State Steering Committees formed | 35 |
| States/UTs inviting industry | 26 |
| SIPs approved | 14 clusters, 8 States and 1 UT, ₹3446 crore |
| Rollout | pilot to all 200 clusters approved |
How does a cluster get approved?
Approval path
- State/UT selects ITIs with industry
- Industry partner submits a Strategic Investment Plan (SIP)
- National Steering Committee (chaired by Secretary, MSDE) approves
- SPV led by the Anchor Industry Partner runs the cluster
Why does PM-SETU matter?
| Angle | What to note |
|---|---|
| Economy | Industry-led training targets the skills employers want. |
| Federalism | States choose ITIs and co-fund; Centre steers through the NSC. |
| Youth | New-age courses in emerging technologies. |
| Governance | SPV model gives industry majority control and accountability. |
What are the challenges in PM-SETU?
- 850 of 1,000 ITIs identified; only 14 clusters have approved plans so far.
- Industry interest may skew towards regions with big anchor companies.
- Instructor quality remains a bottleneck.
What should be done next on PM-SETU?
- Speed up SIP approvals across 200 clusters.
- Track placement outcomes, not just infrastructure.
- Use NSTI Centres of Excellence to train ITI instructors.
What can Prelims ask on PM-SETU?
- PM-SETU launched 4 Oct 2025; outlay ₹60,000 crore.
- Hub-and-spoke: 200 hubs, 800 spokes.
- SPV: industry 51%, Centre 24.5%, State 24.5%.
- NSTIs upgraded: Bhubaneswar, Chennai, Hyderabad, Kanpur, Ludhiana.
- DGT under MSDE is the apex body for ITIs.
How to write about PM-SETU in Mains
Practice question (15 marks, 250 words): Industry-led governance is key to reforming vocational training. Examine with reference to PM-SETU.
- Intro: PM-SETU and ITI growth data.
- Design: hub-spoke, SPV 51%, SIPs.
- Progress: 850 ITIs, 14 clusters.
- Concerns: pace, regional skew, trainers.
- Way forward.
What should UPPCS aspirants note?
- NSTI Kanpur is one of the five NSTIs to be upgraded under Component II.
How to use this in Mains
- As per PIB Backgrounder (2026-10-03): PIB's one-year backgrounder on PM-SETU reports identification of 850 ITIs and approval of 14 ITI clusters.
- Reforming vocational training is how the demographic dividend is meant to become jobs, which is a GS3 employment point.
Quotable data pointPIB's one-year backgrounder on PM-SETU reports identification of 850 ITIs and approval of 14 ITI clusters.
PIB Backgrounder: PM-SETU, One Year of Transforming India's ITIs, 3 Oct 2026
Exam angle
Prelims: PM-SETU expansion; hub-and-spoke. · Mains: Making ITIs industry-relevant.
Practice MCQs
Original practice questions (not PYQs).
Under PM-SETU, the shareholding of the Anchor Industry Partner in an ITI cluster SPV is
Answer (d) & explanation
PIB, 3 Oct 2026.
Which of these cities does NOT have an NSTI covered under PM-SETU Component II?
Answer (c) & explanation
The five are Bhubaneswar, Chennai, Hyderabad, Kanpur and Ludhiana.
The apex body for ITIs that frames norms, curriculum and trade testing is
Answer (b) & explanation
PIB, 3 Oct 2026.
Questions students ask about this
What is PM-SETU?
Pradhan Mantri Skilling and Employability Transformation through Upgraded ITIs, a scheme to upgrade 1,000 Government ITIs.
What is the PM-SETU outlay?
₹60,000 crore: ₹30,000 crore Centre, ₹20,000 crore States, ₹10,000 crore industry.
Who controls an ITI cluster SPV?
The Anchor Industry Partner with 51%; the Centre and State hold 24.5% each.
How many clusters are approved?
14, with Strategic Investment Plans worth ₹3446 crore.
Keep studying
Go deeper
Official source: PIB Backgrounder: PM-SETU, One Year of Transforming India's ITIs, 3 Oct 2026
facts from cited sources only; faculty review pending