National Scheme for Upgradation of Industrial Training Institutes (ITIs)
Posted 17 Jun 2025
Updated 21 Jun 2025
3 min read
Why in the News?
Union Cabinet has approved the National Scheme for Industrial Training Institute (ITI) upgradation and the Setting up of five (5) National Centres of Excellence for Skilling as a Centrally Sponsored Scheme.
Objectives
Features
To make vocational training a central pillar of India's industrial and economic growth, especially in emerging sectors such as electronics, automotive, and renewable energy.
Addressing the rising demand for skilled workforce
Enhancement of knowledge and skills of ITI instructors, strengthening curriculum development, capacity building etc.
Ministry: Ministry of Skill Development and Entrepreneurship
Type: Centrally Sponsored Scheme
Funding:
₹60,000 crore (Central Share: Rs.30,000 crore, State Share: Rs.20,000 crore and Industry Share: Rs.10,000 crore) over five years.
It will be equally co-financed to the extent of 50% of Central share by the Asian Development Bank and the World Bank.
Other Important Features of Scheme:
Revamping: To reposition ITIs as aspirational, government-owned, and industry-managed institutions, offering revamped courses that reflect the evolving skill requirements of modern industries.
The scheme envisions the upgradation of 1,000 Government ITIs in a hub-and-spoke model aligned with industry needs and the capacity augmentation of five National Skill Training Institutes (NSTIs) located in Bhubaneswar, Chennai, Hyderabad, Kanpur, and Ludhiana.
These NSTIs will also house the new National Centres of Excellence.
Financial assistance: To overcome financial issues, a need-based investment provision has been kept under the proposed scheme, allowing flexibility in fund allocation based on the specific infrastructure, capacity, and trade-related requirements of each institution.
Bridging Skill Gaps: To ensure effectiveness, the scheme will adopt an industry-led Special Purpose Vehicle (SPV) model, marking a major shift from earlier government-only approaches.
This will enable close collaboration between ITIs and industry in curriculum planning, infrastructure upgrades, and ongoing management.
Ensuring alignment: Between local workforce supply and industry demand, thereby facilitating industries, including MSMEs, in accessing employment-ready workers.
Focus on Training of Trainers (ToT): By upgrading infrastructure and offering pre-service and in-service training in the NSTIs, to enhance the quality and consistency of vocational education across the country.
'Viksit Bharat' Vision: This scheme aligns with Viksit Bharat (Developed India) by 2047 to fulfil inclusive growth and global competitiveness goals.
About ITIs
Operating under state governments, ITIs have been backbone of Vocational Education and Training (VET) in India since the 1950s.
About Centres of Excellence:
It is a body that provides leadership, best practices, research, support, training of trainers and skill training for a specific sector/s.
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National Scheme for Upgradation of Industrial Training Institutes (ITIs)