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ADB Approves $110 Million Loan to Boost Skills in Gujarat

2025-06-16

The Asian Development Bank (ADB) has approved a USD 109.97 million (Rs 9.27 billion) results-based loan to support Gujarat’s efforts to become a global industrial hub by developing a future-ready, skilled workforce.

The funding will back the Gujarat skills development programme, led by the Department of Labour, Skill Development and Employment in collaboration with Kaushalya: The Skill University (KSU). The initiative aims to equip the workforce with advanced, industry-aligned skills to meet rising employment demand in high-growth sectors.

According to ADB, the programme seeks to strengthen institutional and managerial capacity across the KSU network and improve access to high-quality technical training that incorporates cutting-edge technologies. It is also designed to transform governance and outcomes in the technical and vocational education and training (TVET) system, setting a replicable model for other Indian states.

Focusing on seven priority industries—logistics, automotive, manufacturing, IT, renewable energy, healthcare, and agri-tech—the programme includes upgrading 11 mega industrial training institutes (ITIs), setting up centres of excellence, and establishing a hub-and-spoke model with private training providers under KSU’s leadership.

Training courses will be co-designed with industry partners to ensure alignment with market demands and evolving job trends, thereby improving job-readiness and employability of Gujarat’s workforce.