FCC

India to Invest Rs 600 Billion to Upgrade 1,000 ITIs

2025-07-26

As part of its drive to modernise vocational training, the Ministry of Skill Development and Entrepreneurship (MSDE), in collaboration with Gujarat’s Labour and Employment Department, held a State-Level Workshop at the NAMTECH Campus within IIT-Gandhinagar to discuss the National Scheme for ITI Upgradation.

The consultation brought together key stakeholders from industry and the training ecosystem to align expectations and support implementation of the scheme, which aims to transform 1,000 Industrial Training Institutes (ITIs) across India using a hub-and-spoke model. The total outlay stands at Rs 600 billion—Rs 300 billion from the Centre, Rs 200 billion from State governments, and Rs 100 billion from industry (including CSR).

Shri Rajit Punhani, Secretary, MSDE, emphasised that the initiative is not merely about infrastructure but about “upgrading aspirations”. He said the co-leadership model among Centre, States, and industry would ensure relevance, quality, and global readiness.

Gujarat has been chosen as the pilot state. Ms. Sonal Mishra, Additional Secretary, MSDE, said outcome-driven SOPs are being finalised. “The upgraded ITIs will focus on industry-aligned curriculum, practical training, and robust placement linkages,” she noted.

Dr. Vinod Rao, Principal Secretary, Labour and Employment, Gujarat, outlined the state's ambition to become a USD 1 trillion economy by 2030, requiring the induction of 10 million people into the workforce. He said the state aims to raise women’s workforce participation from 42 per cent to 75 per cent and mobilise Rs 500 billion in private investment for skilling.

Key focus areas discussed included curriculum co-design with industry, equipment modernisation, CSR-driven funding, and clear outcome metrics. Thirty-six major companies participated, including Tata Motors, JSW, Schneider Electric, Reliance Industries, MG Motor, and Adani Skills.

The scheme also includes upgrading five National Skill Training Institutes into Centres of Excellence with global partnerships. Of the 1,000 ITIs, 200 will serve as Hubs with advanced facilities, while 800 Spokes will ensure reach and quality parity across regions.

The event also featured representatives from national industry bodies such as FICCI, CII, GJEPC, and academic partners including Kaushalya – The Skill University.