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National Scheme for Industrial Training Institute ITI Upgradation

National Scheme for Industrial Training Institute ITI Upgradation

09-05-2025
  1. The "National Scheme for ITI Upgradation and Setting up of five National Centres of Excellence for Skilling" was approved under Budget 2024-25.
  2. It will be implemented as a Centrally Sponsored Scheme.
  3. Transform existing ITIs into government-owned, industry-managed aspirational skill institutes, with support from State Governments and industry.
  4. Total Outlay: ₹60,000 crore over five years (Central Share: ₹30,000 crore, State Share: ₹20,000 crore, Industry Share: ₹10,000 crore).
  5. 50% of the Central Share (₹15,000 crore) will be co-financed equally by the Asian Development Bank and the World Bank.
  6. Focus Areas:
  1. Upgrade 1,000 Government ITIs through a hub and spoke model with revamped industry-aligned trades (courses).
  2. Expand capacity in five National Skill Training Institutes (NSTIs).
  3. Set up five National Centres of Excellence for Skilling within these NSTIs.
  4. Use an industry-led Special Purpose Vehicle (SPV) model for outcome-driven implementation.
  1. About ITIs:
  1. ITIs have been the backbone of Vocational Education and Training (VET) in India since the 1950s.
  2. They operate under State Governments and are accredited by the Directorate General of Training (DGT), under the Ministry of Skill Development & Entrepreneurship.
  3. Currently, there are about 15,034 ITIs, of which 78% are privately owned.
  4. Challenges in ITI Ecosystem
  • Quality Gap compared to Global Standards
  • Low Placement rates
  • Low Social Acceptance
  • Underutilization
  1. Relevant Schemes: STRIVE, Model ITI, and Enhancing Skill Development Infrastructure in North Eastern States (ESDI).

 

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