Context:

The Central government has recently launched PM‑SETU Yojana, aimed at transforming Industrial Training Institutes (ITIs) to make them industry‑aligned, modern, and employability oriented.

Background & Rationale:

• • Many existing ITIs (Industrial Training Institutes) in India have outdated infrastructure, limited industry linkages, and curricula that may not match current market demands.
  • There exists a gap between what is taught in vocational/technical institutions and what industries expect, leading to underemployment or unemployability of graduates.
  • Given India’s large youth population, equipping them with relevant, high‑quality skills is central to economic growth and reducing unemployment.
  • The scheme is designed to modernize the ITI ecosystem so that it can better serve youth across urban and rural areas.

Key Features & Structure:

• • Budget & Scale: PM‑SETU is backed by an investment of around ₹ 60,000 crore.
  • Number of ITIs: The scheme plans to upgrade 1,000 government ITIs across India, using a “hub‑and‑spoke” model.
  • Hub‑and‑Spoke Model:
    • Among the 1,000 ITIs, 200 will be “Hub” ITIs and 800 will be “Spoke” ITIs.
    • On average, each Hub will link with about 4 Spoke ITIs, forming clusters.
    • Hubs will host advanced infrastructure: modern trades, digital learning systems, innovation and incubation centers, production units, and placement support.
    • Spoke ITIs will broaden access, especially in more remote or underserved areas.
  • Industry‑Managed Model: The scheme envisions that while the ITIs remain government‑owned, their management and operations would be carried out in collaboration with industry partners (“industry‑managed”). This is to align training outcomes with actual industry needs.

Objectives & Expected Outcomes:

• • Enhancing the quality of training in ITIs
  • Making curricula aligned to industry needs (so that students acquire skills demanded by employers)
  • Strengthening industry linkages and partnerships
  • Promoting innovation and entrepreneurship through incubation and production units
  • Increasing access and reach of vocational training, especially in underserved or remote areas
  • Creating employment opportunities and improving employability of youth
  • Over the next few years, it is estimated that about 2 million (20 lakh) youth will gain employable skills through this scheme.

Benefits & Potential Impact:

1.       Better Employability: Graduates of ITIs will have relevant, updated skills making them more attractive to industries.

2.      Industry–Institution Linkage: With industry playing a role in managing and guiding ITIs, the training will stay in sync with real market needs.

3.      Efficient Use of Resources: The hub‑and‑spoke model allows pooling of advanced infrastructure (in hubs) while extending reach through spokes.

4.     Innovation & Entrepreneurship: Incubation centers and production units in hubs can spur start-ups and small businesses by trained youth.

5.     Inclusivity & Access: Spoke ITIs and vocational labs in remote/tribal zones reduce the barrier of distance and bring training closer to learners.

Conclusion:

PM‑SETU is a bold and ambitious attempt to reimagine the ITI system in India — not just as schools, but as dynamic, industry‑aligned hubs of vocational excellence. If implemented rigorously and monitored well, it has the potential to impact millions of young Indians by elevating their skills, bridging the gap between education and employment, and fueling inclusive growth.