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Centre Unveils Rs60,000 Cr ITI Overhaul to Boost Skilled Workforce – Details Inside

Govt to upgrade 1,000 ITIs in partnership with states and industry under new centrally sponsored scheme
Indian Masterminds Stories

New Delhi: In a landmark initiative to modernize India’s vocational training infrastructure, the central government is set to launch a programme to upgrade 1,000 government-run Industrial Training Institutes (ITIs) under a ₹60,000 crore Centrally Sponsored Scheme. The announcement coincides with World Youth Skills Day, reaffirming the government’s focus on empowering youth with relevant and future-ready skills.

Union Minister of Skill Development and Entrepreneurship Jayant Chaudhary and Ministry Secretary Rajit Punhani detailed the ambitious plan during a press briefing on Tuesday, underlining the importance of quality, governance, innovation, and inclusion in skill education.

Read Also: India to Host Semicon India 2025 with First-Ever Global Pavilions, Major Skilling Push, and Startup Showcases

Key Features of the ITI Upgradation Scheme

The ₹60,000 crore outlay will be funded through a PPP model, with:

  • ₹30,000 crore from the Centre
  • ₹20,000 crore from States
  • ₹10,000 crore from Industry partners
  • The initiative will follow a “hub-and-spoke” model, comprising 200 hubs and 800 spokes.
  • A total of 1,000 out of 3,000 government ITIs will be targeted in the first phase.

This programme is going to unleash the competitive spirit of India. We must remain focused on quality and relevance,” said Chaudhary.

Systemic Cleanup and Quality Push

Chaudhary revealed that the ministry has de-affiliated ITIs with chronically vacant seats, addressing longstanding quality issues:

  • Over 4.5 lakh seats have remained vacant since 2018 across various ITIs.
  • Action is being taken against institutions with 99,000 seats vacant in the last two years.
  • These reforms have led to an 11% increase in ITI admissions in 2024, indicating renewed public trust.

This is a massive cleanup. We’re not just expanding—we’re improving,” Chaudhary emphasized.

New Initiatives to Be Launched on July 22

As part of the broader skill development agenda, the Ministry of Skill Development and Entrepreneurship will unveil several new programmes:

‘Skilling for AI Readiness’:
A free online course for school students from Classes 6 to 12, aimed at preparing 1 lakh students in its pilot phase for careers in artificial intelligence and digital technologies.

Revised NCVT Guidelines:
New norms for affiliating bodies will be rolled out to improve the governance and accreditation of skill training institutes.

Read Also: India Launches First-Ever e-Truck Incentive Scheme to Boost Green Freight Mobility

Tracking Dropouts with NEET Metric

To tackle the issue of dropouts from vocational training, Chaudhary confirmed that the Periodic Labour Force Survey (PLFS) will now begin tracking NEET (Not in Education, Employment or Training) metrics.

This will help us understand and reduce the dropout rate over time. The Ministry of Statistics has accepted this inclusion, which is a major step forward in monitoring youth engagement,” he said.

Building Skilling Infrastructure for the Future

The scheme also includes the creation of five National Centres of Excellence (NCoEs) in Bhubaneswar, Chennai, Hyderabad, Kanpur, and Ludhiana, designed to serve as benchmarks in vocational training and advanced skill development.


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