PM-SETU: Launched by Prime Minister Narendra Modi on October 4, 2025, during the Kaushal Deekshant Samaroh at Vigyan Bhawan, New Delhi, the PM-SETU scheme is a flagship ₹60,000 crore centrally sponsored initiative by the Ministry of Skill Development and Entrepreneurship (MSDE). Approved by the Union Cabinet in May 2025, it overhauls India’s vocational training landscape by shifting to an industry-led, government-owned model. This ensures training aligns with global job markets, creating a robust pipeline of skilled workers for sectors like manufacturing, IT, and green energy. The scheme draws co-financing from the World Bank and Asian Development Bank to amplify its impact.
- Modernize and upgrade 1,000 government Industrial Training Institutes (ITIs) under a hub-and-spoke model: 200 “hub” ITIs will serve as advanced centers with cutting-edge infrastructure, digital labs, incubation hubs, and placement cells, connected to 800 “spoke” ITIs for wider access.
- Transform five National Skill Training Institutes (NSTIs) in Bhubaneswar, Chennai, Hyderabad, Kanpur, and Ludhiana into global Centres of Excellence for specialized trades.
- Foster industry collaboration to design job-linked curricula, upskill instructors (via training-of-trainers programs), and integrate real-world production units in ITIs.
- Bridge the skill gap for 1.5 crore youth over five years, emphasizing employability in emerging fields like AI, EVs, and sustainability.
Shift to Industry-Led Model: Call for Anchor Industry Partners (AIPs)
In a pivotal move announced on December 24, 2025, MSDE has issued an Expression of Interest (EOI) inviting corporates, industry associations, and sector skill councils to become AIPs. These partners will:
- Co-design market-relevant curricula and assessments.
- Invest in infrastructure upgrades (e.g., smart classrooms, VR simulators).
- Manage operations through Special Purpose Vehicles (SPVs) in partnership with central/state governments.
- Ensure 70-80% placement rates for trainees.
EOIs are open until January 15, 2026, with shortlisting based on technical expertise, financial viability, and commitment to inclusivity (e.g., for women and rural youth). Selected AIPs receive viability gap funding from the Centre (up to 50% of costs) and tax incentives.
State-Level Momentum
Several states and Union Territories (UTs) have proactively released their own EOIs to identify local partners for ITI transformations, demonstrating federal buy-in:
| State/UT | EOI Release Date | Key Focus Areas | Contact Portal |
|---|---|---|---|
| Karnataka | December 10, 2025 | IT/electronics hubs in Bengaluru | ksdt.kar.nic.in |
| Gujarat | December 12, 2025 | Manufacturing spokes in Ahmedabad | dvet.gujarat.gov.in |
| Assam | December 15, 2025 | Agri-tech and textiles in Guwahati | dvet.assam.gov.in |
| Chandigarh | December 6, 2025 | Multi-sector NSTI upgrades | chdtechnicaleducation.gov.in |
More states like Bihar, Maharashtra, and Tamil Nadu are expected to follow suit by early 2026.
Broader Ecosystem Boost
PM-SETU integrates with complementary launches from October 2025:
- 1,200 Skill Labs in 600 schools (Navodaya Vidyalayas and Eklavya Model Residential Schools) for early vocational exposure in 12 sectors.
- Bihar-specific boosts: Revamped student credit cards (₹4 lakh interest-free loans), youth commission, and Karpoori Thakur Skill University.