In a landmark initiative aimed at bridging the industry-skill gap, the Government of India has rolled out a ₹60,000 crore (US$ 6.94 billion) plan to modernise 1,000 Industrial Training Institutes (ITIs) across the country. This ambitious scheme, launched under the aegis of the Ministry of Skill Development and Entrepreneurship, is designed to train 2 million youth over the next five years, aligning vocational education with industry needs and modern manufacturing practices.

The scheme is anchored on a hub-and-spoke model, where leading ITIs will act as “hubs”, offering advanced training programs and sharing resources with smaller “spoke” institutes in surrounding areas. This strategy is aimed at standardising the quality of industrial training while catering to localised sector-specific skill requirements.

Corporate Powerhouses Join Hands

A key highlight of this project is the active involvement of India’s largest conglomerates. Reliance Group, Adani Group, Mahindra Group, JK Cement, Jindal Group, Toyota India, Schneider Electric, and ArcelorMittal Nippon Steel have already expressed concrete interest. These companies have also identified preferred sectors and states in which they would like to participate, based on their operational presence and strategic goals.

In parallel, talks are ongoing with Bharat Heavy Electricals Ltd (BHEL), Larsen & Toubro, and Bajaj Auto, among others. These companies are expected to not only provide financial support but also assist in developing new curriculum, setting performance standards, and ensuring that the training provided aligns with contemporary industrial practices.

This unique public-private partnership model marks a significant shift in India’s approach to skill development, enabling industry stakeholders to become active contributors to national workforce development.

National Steering Committee Formed

To oversee the implementation and ensure effective coordination across states and companies, the government has constituted a National Steering Committee. Chaired by Mr. Rajit Punhani, Secretary, Ministry of Skill Development & Entrepreneurship, the committee includes representatives from various central ministries and private sector firms, including Bajaj Auto and ITC Ltd.

The Committee’s mandate includes:

• Policy formulation

• Reviewing state-level proposals

• Fund allocation

• Industry collaboration for curriculum alignment

This steering body is expected to act as the nerve centre of the program, bringing coherence to the national-level rollout while allowing state-level flexibility to account for local employment patterns and industrial requirements.

Focus on Manufacturing & Employability

Given the centrality of manufacturing to India’s economic growth, the program places a strong emphasis on skills for the manufacturing sector. The World Bank and the Asian Development Bank (ADB) are supporting the scheme through co-financing, reaffirming the global developmental interest in India’s skill enhancement efforts.

The upgraded ITIs will offer courses in advanced manufacturing technologies, robotics, automation, AI in production, and other industry 4.0 disciplines. The curriculum is being designed in tandem with corporate partners to ensure relevance and applicability, thereby boosting youth employability.

In addition, five Centres of Excellence (CoEs) for Skilling will be established at National Skill Training Institutes (NSTIs) in:

• Bhubaneswar

• Chennai

• Hyderabad

• Kanpur

• Ludhiana

These CoEs will serve as innovation labs and training hubs for instructors and master trainers, further amplifying the quality and reach of the initiative.

State-Level Customisation and Collaboration

Each participating state is encouraged to submit proposals indicating:

• Key sectors requiring skilled manpower

• List of potential ITIs for upgradation

• Preferred industry partners for collaboration

The government’s approach is flexible yet targeted, ensuring that regions with high industrial potential and youth population receive maximum attention. States with large tribal and rural populations are being prioritised to ensure inclusivity and equitable access to quality training.

Bridging the Skills-Industry Gap

A persistent concern in India’s skilling ecosystem has been the misalignment between academic training and industry demands. This scheme tackles that issue head-on by ensuring:

• Corporate involvement in syllabus design

• Hands-on apprenticeships and internships

• Real-time industry exposure for trainers and students

This is expected to significantly reduce the mismatch between available skills and job vacancies, particularly in the manufacturing, construction, automotive, energy, and infrastructure sectors.

Moreover, the presence of multinational companies like Toyota and ArcelorMittal in the initiative suggests a focus on global standards, opening up pathways for international employment and positioning India as a global skilling hub.

Monitoring, Evaluation, and Future Expansion

The implementation of the ₹60,000 crore program will be monitored through:

• Key performance indicators (KPIs)

• Third-party evaluations

• Bi-annual reviews by the Steering Committee

• Online dashboards for transparency and progress tracking

Based on the success and learning from the first 1,000 ITIs, the government has indicated that future phases may cover an additional 2,000 institutions, with a broader goal of transforming India’s vocational education landscape by 2030.

Conclusion

The involvement of corporate giants like Reliance, Adani, and Mahindra in the ₹60,000 crore Industrial Training Institutes upgrade scheme is a milestone in India’s skill development journey. With the hub-and-spoke model, corporate partnerships, and international financing, this initiative is poised to transform vocational training, significantly boost youth employability, and align India’s workforce with global industrial standards.

This program not only serves as a blueprint for industry-academia collaboration but also as a model for inclusive economic growth—where government, private sector, and international agencies work together to empower millions of young Indians with the skills of tomorrow.

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