Source: BL
Context
On Tuesday, 7 July 2026, the Ministry of Skill Development and Entrepreneurship (MSDE) approved the pan-India nationwide rollout of the ₹60,000-crore Pradhan Mantri Skilling and Employability Transformation through Upgraded ITIs (PM-SETU) scheme across 200 Industrial Training Institute (ITI) clusters — moving beyond the pilot phase — along with clearance for Strategic Investment Plans (SIPs) worth ₹1,237.58 crore for 5 clusters spread across Odisha, Gujarat, and Telangana. The decision was taken at the 4th meeting of the National Steering Committee (NSC) chaired by Debashree Mukherjee, Secretary, MSDE.
The scheme at a glance
- Scheme: Pradhan Mantri Skilling and Employability Transformation through Upgraded ITIs (PM-SETU).
- Type: Centrally Sponsored Scheme (CSS).
- Outlay: ₹60,000 crore over 5 years.
- Nodal Ministry: Ministry of Skill Development and Entrepreneurship (MSDE).
- Announced: Union Budget 2024-25.
- Union Cabinet approval: May 2025.
- Formal launch by PM Modi: 4 October 2025.
- Nationwide rollout approved: 7 July 2026.
- Global co-financing: World Bank + Asian Development Bank (ADB).
Key Objectives
- Modernise India’s ITI ecosystem.
- Upgrade 1,000 government ITIs into industry-aligned training institutions.
- Bridge the skills-jobs mismatch.
- Align vocational training with current + future industry requirements.
- Prepare a future-ready workforce.
Practice MCQs
Q1. With reference to the PM-SETU Scheme, consider the following statements:
- It is a Centrally Sponsored Scheme with a total outlay of ₹60,000 crore over 5 years.
- It aims to upgrade 1,000 government ITIs across India.
- It follows a hub-and-spoke model with 200 hub ITIs and ~800 spoke ITIs.
- It was announced in the Union Budget 2023-24.
How many of the above statements are correct?
(a) Only one (b) Only two (c) Only three (d) All four (e) None
(Statement 4 is wrong; PM-SETU was announced in the Union Budget 2024-25 — NOT 2023-24. It was approved by the Union Cabinet in May 2025 and formally launched by PM Modi on 4 October 2025.)
Answer Key
- (c) — Statement 4 wrong: Announced in Budget 2024-25, not 2023-24.





