Cabinet Approves National Scheme for ITI Upgradation and National Centres of Excellence for Skilling

Context:

Union Cabinet, chaired by Prime Minister Shri Narendra Modi, has approved the National Scheme for Industrial Training Institute (ITI) Upgradation and the Setting up of Five National Centres of Excellence (NCOEs) for Skilling. The ambitious initiative, launched as a Centrally Sponsored Scheme, seeks to make vocational training aspirational and industry-relevant, forming a critical pillar in India's journey toward becoming a developed nation by 2047.

Key features of the scheme:

· Up gradation of 1,000 Government ITIs: A cornerstone of the scheme is the upgradation of 1,000 Government ITIs under a hub-and-spoke model, aimed at aligning trades and courses with contemporary industry needs.

· Establishing National Centres of Excellence: To further bolster vocational education, the scheme provides for the capacity augmentation of five National Skill Training Institutes (NSTIs) located in Bhubaneswar, Chennai, Hyderabad, Kanpur, and Ludhiana. These institutes will host five National Centres of Excellence (NCOEs), acting as premier institutions for skills training, research, and trainer development.

· Industry-Led Implementation Framework: For the first time, the Government has adopted an industry-led Special Purpose Vehicle (SPV) model to ensure outcome-driven implementation. This structure promotes a deep and sustained collaboration with industry, not only in planning but also in managing and delivering skilling programs.

Finance of the scheme:

The scheme comes with a robust financial outlay of Rs. 60,000 crore, structured as follows:

Central Government Share: Rs. 30,000 crore
State Government Share: Rs. 20,000 crore
Industry Share: Rs. 10,000 crore

Significantly, 50% of the Central share will be co-financed by the Asian Development Bank (ADB) and the World Bank, marking a strong international partnership in India’s skilling agenda.

Strategic Objectives:

· Skilling 20 Lakh Youth: Over a five-year horizon, the scheme targets to skill 20 lakh youth through industry-aligned courses, directly addressing the human capital needs of high-growth and emerging sectors such as electronics, automotive, renewable energy, and more.

· Bridging Workforce Supply and Industry Demand: By ensuring geographical and sectoral alignment between the local workforce and industry requirements, the scheme aims to eliminate existing skill mismatches and enable MSMEs and large industries to access a pipeline of employment-ready workers.

· Training of Trainers: Upgraded infrastructure will also cater to Training of Trainers (ToT) needs. The scheme will train 50,000 trainers, enhancing the quality and consistency of vocational education delivery across the country.

Conclusion:

The National Scheme for ITI Upgradation and Setting up of National Centres of Excellence marks a pivotal moment in India’s skilling narrative. With a future-forward, industry-integrated approach and significant international support, the scheme holds the promise of empowering India’s youth, driving economic productivity, and positioning India as a global hub for skilled talent.