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.
Context
The scheme at a glance
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- 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).
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Open this page as a PDFKey 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.
