In a landmark move to revolutionize vocational education and bridge the industry-skill gap, the Union Cabinet chaired by Prime Minister Narendra Modi has approved the National Scheme for Industrial Training Institute (ITI) Upgradation and Setting up of Five National Centres of Excellence (NCOEs) as a Centrally Sponsored Scheme.
Announced in line with the Union Budgets for 2024–25 and 2025–26, the scheme carries a massive outlay of ₹60,000 crore, jointly funded by the Central Government (₹30,000 crore), State Governments (₹20,000 crore), and Industry (₹10,000 crore). Notably, half of the Centre’s contribution will be co-financed by the Asian Development Bank and the World Bank, further underlining the global confidence in India’s skilling push.
Under the scheme, 1,000 Government ITIs will be upgraded in a hub-and-spoke model with revamped, industry-aligned courses. Additionally, five National Skill Training Institutes (NSTIs) located in Bhubaneswar, Chennai, Hyderabad, Kanpur, and Ludhiana will see significant capacity augmentation and house five National Centres of Excellence for Skilling.
Aimed at transforming existing ITIs into government-owned, industry-managed aspirational institutions, the scheme targets to skill 20 lakh youth over five years, in collaboration with State Governments and industry partners. It introduces, for the first time, an industry-led Special Purpose Vehicle (SPV) model to ensure outcome-driven implementation and sustained industry involvement.
The scheme will also invest in training 50,000 trainers, enhancing both pre-service and in-service capacity, and significantly improving Training of Trainers (ToT) infrastructure across the five key NSTIs.
Addressing long-standing gaps in infrastructure, course relevance, and employability, the initiative promises to modernize vocational education to align closely with emerging industry demands—particularly in high-growth sectors such as electronics, automotive, and renewable energy.
By creating a future-ready workforce and rebranding vocational training as a viable, aspirational career path, the scheme supports the Prime Minister’s vision of Viksit Bharat, positioning skilling at the heart of India’s economic and industrial growth strategy.
