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News 7 of 22

PM-SETU Allocates ₹60,000 Crore for 1,000 ITI Upgrades and Five NSTIs as Premier Skilling Centres

PolitySocial IssuesHIGH
Target:UPSC GS-IIMPSCTeachingSSC GAPrelims HighMains HighStatic GK Link
06 Feb 2026
~2 min
Source: The Hindu
Key Data:₹60,000 crore5-year period1,000 ITIs5 NSTIs0.09% placement rate405 candidates placed
Bodies:NITI AayogMinistry of Skill Development and Entrepreneurship
Practice MCQs from today's news ▸
What This Article Covers

1.The government launches PM-SETU with a ₹60,000 crore outlay to upgrade 1000 ITIs and 5 NSTIs, shifting to a 'government-owned, industry-managed' model with mandatory 17% industry contribution.

2.The scheme is a response to a NITI Aayog report revealing a shockingly poor 0.09% placement rate (405 placed out of 4,14,247 trained) despite annual public expenditure of ~₹10,000 crore on ITIs.

3.Key challenges include bridging the trainer skill gap, ensuring inclusive reach to rural ITIs under the hub-and-spoke model, and creating sustainable industry linkages beyond large corporations.

The Big Picture
Prelims · HighMains · High

The PM-SETU scheme marks a major shift in India's vocational training strategy, investing ₹60,000 crore over five years to upgrade ITIs and NSTIs through a mandatory industry partnership model. This is a direct response to the dismal 0.09% placement rate reported by NITI Aayog, aiming to make skilling demand-driven and improve job outcomes. For exam aspirants, this is a critical case study in Public-Private Partnerships (PPP), government spending efficiency, and the challenges of translating policy into on-ground employment.

Exam Lens

Quick Exam Facts From News

Scheme Outlay₹60,000 crore (over 5 years)
ITIs to be Upgraded1000 (200 Hub + 800 Spoke)
NSTIs to be Developed5 (Bhubaneswar, Chennai, Hyderabad, Kanpur, Ludhiana)
Previous Placement Rate0.09% (NITI Aayog 2023 Report)
Mandatory Industry Contribution17% for ITI Clusters
NSTI Industry InvestmentMin. ₹40 crore over 5 years

1-Minute Revision

  • ›Scheme Outlay: ₹60,000 crore (over 5 years)
  • ›ITIs to be Upgraded: 1000 (200 Hub + 800 Spoke)
  • ›Target this Data: Placement rate of 0.09% from NITI Aayog 2023 report.
  • ›Target this Nodal Body: National Steering Committee (NSC) chaired by Secretary, Ministry of Skill Development and Entrepreneurship.
  • ›Target this Legal Point: CSR funds under Companies Act, 2013 can be used for mandatory industry contribution.

Mastered this topic? Test your knowledge with a full MCQ quiz.

Practice exam-style questions, track your score, and strengthen your recall.

Q1Static LinkageEasy

The National Steering Committee (NSC) for the PM-SETU scheme is chaired by the Secretary of which Ministry?

Q2Statement-basedHard

Consider the following statements regarding the PM-SETU scheme:

1. It has a total outlay of ₹60,000 crore to be spent over a ten-year period.

2. The scheme mandates a minimum industry contribution of 17% for the upgradation of ITI clusters.

3. The scheme aims to upgrade 500 Government ITIs under a hub-and-spoke model.

Which of the statements given above is/are correct?

Q3Data-centricMedium

According to a 2023 NITI Aayog report cited in the article, what was the placement rate for candidates trained in government ITIs?

Q4Application/ImpactMedium

What is a primary concern regarding the hub-and-spoke model under PM-SETU, as highlighted in the article?

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