Govt unveils ₹60,000 crore plan to modernize ITIs and boost infrastructure

India is set to undertake a major revamp of its vocational education landscape with the Union Cabinet, chaired by Prime Minister Narendra Modi, approving a new initiative to modernize Industrial Training Institutes (ITIs) and establish National Centers of Excellence for Skilling.

The centrally sponsored scheme comes with a massive budget of ₹60,000 crore and aims to bring industry-grade training and infrastructure to the country's skill ecosystem.

This initiative will upgrade 1,000 government ITIs using a hub-and-spoke model and revamp course offerings to align them with the evolving needs of the industry.

In addition, five National Skill Training Institutes (NSTIs) located in Bhubaneswar, Chennai, Hyderabad, Kanpur, and Ludhiana will be enhanced, and five National Centers of Excellence for Skilling will be created within them.

An official statement emphasized that "the scheme aims to position existing ITIs as government-owned, industry-managed aspirational institutes of skills, in collaboration with state governments and industry."

Over five years, it is expected to train around 20 lakh youth in trades that match human capital demands across sectors like automotive, electronics, and renewable energy.

To fund this expansive effort, the project will draw ₹30,000 crore from the center, ₹20,000 crore from states, and ₹10,000 crore from industry partners.

International financial support will also play a role, with the Asian Development Bank and the World Bank each co-financing half of the center’s contribution.

Unlike past schemes, this program introduces a deep-rooted industry partnership through a Special Purpose Vehicle (SPV) model that shifts focus to outcome-driven execution.

“The financial assistance provided under various schemes in the past was suboptimal... this proposal introduces a flexible, need-based approach,” the statement noted.

Alongside infrastructure overhauls, the scheme places emphasis on preparing educators—50,000 trainers will undergo pre-service and in-service training.

This is intended to bolster teaching capacity and ensure training quality in modern trades.

For decades, ITIs have played a central role in India’s vocational education system but struggled with low aspiration levels and outdated resources.

Despite a 47% increase in the number of ITIs since 2014—now numbering over 14,600 with 1.44 million enrolled—systemic challenges have persisted.

The government views this initiative as a timely scale-up of previous decade-long efforts.

“It is perhaps the best time to scale incremental efforts of the last decade... aligned with industry needs to create a pool of skilled workforce,” the statement added.

Ultimately, the initiative supports the broader vision of Viksit Bharat—an advanced, self-reliant India by 2047—by ensuring that the country’s workforce is prepared for both domestic growth and global competitiveness.