National Scheme for Industrial Training Institute (ITI) Upgradation

The Union Cabinet, led by Prime Minister Shri Narendra Modi, has approved a new national scheme to upgrade Industrial Training Institutes (ITIs) and establish five National Centres of Excellence for Skilling across India.

The “National Scheme for ITI Upgradation and Establishment of Five National Centres of Excellence (NCOE)” will be launched as a Centrally Sponsored Scheme, as announced in the Union Budgets 2024–25 and 2025–26. 

The scheme has a total outlay of ₹60,000 crore, with contributions from the Centre (₹30,000 crore), States (₹20,000 crore), and Industry (₹10,000 crore). Half of the Central share will be co-financed equally by the Asian Development Bank and the World Bank.

Key features of the National Scheme for ITI Upgradation Scheme

• The scheme will focus on upgrading 1,000 Government ITIs.
• These ITIs will follow a hub and spoke arrangement.
• The scheme will introduce industry-aligned, revamped trades (courses).
• It will also support capacity augmentation of 5 National Skill Training Institutes (NSTIs).
• Each of these 5 NSTIs will have a National Centre of Excellence for Skilling established.
• The Scheme aims to transform existing ITIs into government-owned, industry-managed aspirational skill institutes.
• It will be implemented in collaboration with State Governments and industry partners.
• Over a period of five years, the scheme will skill 20 lakh youth.
• The courses offered will cater to the human capital needs of various industries.
• A key focus will be on aligning local workforce supply with industry demand.
• The scheme will help industries, including MSMEs, gain access to employment-ready workers.

Reimagining ITIs for a Skilled and Self-Reliant India

India is on a mission—to become a developed nation by 2047. And at the heart of this journey lies something often overlooked but absolutely vital: vocational education. Since the 1950s, Industrial Training Institutes (ITIs) have played a key role in skilling our youth. Today, with more than 14,600 ITIs and over 14 lakh students enrolled, the network is strong, but it hasn’t reached its full potential.

Let’s be honest—many ITIs still struggle with outdated infrastructure, limited course options, and a perception problem. While various schemes in the past have tried to support their growth, the investment was never quite enough to bring about real, lasting transformation.

That’s where the new ITI upgradation scheme steps in—with a fresh, focused, and flexible approach.

A Scheme That Listens, Learns, and Leads

Unlike earlier efforts, this scheme is built with a clear goal: to truly modernize ITIs in a way that reflects the changing needs of our industries and youth. For the first time, a need-based investment approach will guide funding—meaning institutions will get support based on their specific infrastructure needs, training capacity, and trade demands.

And there’s more. This isn’t just about pouring in money—it’s about building real, lasting partnerships with the industry. Through an industry-led Special Purpose Vehicle (SPV) model, the scheme will bring in sector experts to co-plan and co-manage the upgradation of ITIs. It’s a strategic shift that ensures outcomes matter more than paperwork.

Empowering Trainers, Modernizing Learning

The scheme also puts a strong focus on the people who make learning possible—our trainers. Five National Skill Training Institutes (NSTIs)—located in Bhubaneswar, Chennai, Hyderabad, Kanpur, and Ludhiana—will receive upgraded infrastructure to support better training of trainers (ToT). More than 50,000 trainers will benefit from pre-service and in-service training, ensuring that students get the latest and most relevant skill education.

Creating a Skilled Workforce for the Future

At its core, this initiative aims to fix four major challenges: outdated infrastructure, limited course relevance, low employability, and weak public perception of vocational training. The result? ITIs that are future-ready and capable of fueling India’s ambition to become a global leader in manufacturing, innovation, and sustainability.

With high-growth sectors like electronics, automotive, and renewable energy demanding more skilled workers, the scheme will help build a strong pipeline of talent that meets real industry needs. It’s not just an education plan—it’s a national strategy for economic empowerment.

The Bigger Picture: Skilling for Viksit Bharat

This ITI re-imagination aligns with the Prime Minister’s vision of a Viksit Bharat—a developed, self-reliant India where every youth has the skills and confidence to shape their future. And through this, vocational education will no longer be the second choice—it will be the smart choice.

Reference: PIB