CURRENT AFFAIRS
CURRENT AFFAIRS
Description
In a landmark move to modernize vocational education and bridge the skills gap in India's workforce, the Union Cabinet, chaired by Prime Minister Narendra Modi, has approved the National Scheme for Industrial Training Institute (ITI) Upgradation and the Establishment of Five National Centres of Excellence for Skilling. This centrally sponsored initiative, with a substantial financial outlay of Rupees 60,000 crore, aims to transform 1,000 ITIs into cutting-edge training hubs and establish five world-class skilling centres across the country. The scheme is a critical component of India’s broader strategy to achieve the "Viksit Bharat@2047" vision, aligning workforce capabilities with global industry standards.
On May 7, 2025, the Union Cabinet cleared this ambitious skilling scheme, which seeks to strengthen India’s vocational education framework. It aligns with the priorities set in the Union Budget 2024-25 and 2025-26, focusing on enhancing the employability of Indian youth in high-demand sectors like manufacturing, electronics, renewable energy, and automotive technology. The program aims to address longstanding infrastructure gaps, introduce next-generation trades, and foster industry collaboration to produce a globally competitive workforce.
Key Objectives Of Scheme
Modernize and Upgrade ITIs - Transform 1,000 government-run ITIs into industry-aligned institutions with state-of-the-art facilities, updated curricula, and digital learning tools.
Create Centres of Excellence - Establish five National Centres of Excellence for Skilling in major industrial hubs, providing advanced training and industry-relevant courses.
Enhance Workforce Competitiveness - Equip over 20 lakh youth with the skills required for emerging industries and global supply chains.
Promote Industry Collaboration - Foster partnerships between the government, industry leaders, and educational institutions to improve placement rates and job readiness.
Make Vocational Training Aspirational - Change public perception of vocational education by integrating modern, high-tech training modules and industry-specific skills.
Scheme Overview
Name: National Scheme for ITI Upgradation and National Centres of Excellence
Financial Outlay: Rupees 60,000 crore over five years
Funding Structure:
Central Government: Rupees 30,000 crore (50% co-financed by ADB and World Bank)
State Governments: Rupees 20,000 crore
Industry Contribution: Rupees 10,000 crore
Duration: 5 years (2025-2030)
Beneficiaries: 20 lakh youth across India
Training for Trainers: 50,000 trainers (both pre-service and in-service) to be upskilled to meet industry requirements
Major Components Of Scheme
Upgradation of 1,000 ITIs:
Implement a hub-and-spoke model to connect leading ITIs (hubs) with smaller training centres (spokes) for knowledge transfer and resource sharing.
Introduce advanced, industry-aligned courses in areas like robotics, artificial intelligence, renewable energy, electric vehicles, and digital manufacturing.
Integrate digital classrooms, simulation labs, and smart workshops to enhance practical learning.
Establishment of 5 National Centres of Excellence:
These centres, located in Chennai, Ludhiana, Kanpur, Hyderabad, and Bhubaneswar, will serve as high-tech skill development hubs, offering specialized training in high-growth sectors.
They will collaborate closely with global corporations and Indian industries to ensure curriculum relevance and placement opportunities.
Modernization of National Skill Training Institutes (NSTIs):
Upgrade five NSTIs to provide cutting-edge training for trainers and support the professional development of ITI faculty.
Flexibility in Fund Allocation:
Adopt a Special Purpose Vehicle (SPV) approach, allowing ITIs greater autonomy in utilizing funds based on their specific infrastructure needs and regional industry demands.
Implementation Model And Strategic Focus
Industry-Led Management - Each upgraded ITI and Centre of Excellence will be governed by industry-led committees to ensure market-aligned skill development.
Focus on High-Growth Sectors - Prioritize training in sectors like electronics, automotive, renewable energy, digital manufacturing, and precision engineering.
MSME Engagement - Encourage participation from Micro, Small, and Medium Enterprises (MSMEs) to provide real-world training and employment pathways.
Digital Integration - Leverage digital platforms for remote learning, assessment, and job placement.
Significance And Expected Impact
Strengthened Workforce for Global Competitiveness - The scheme is designed to create a skilled workforce capable of competing in global markets, supporting India’s export growth and industrial expansion.
Boost to Local Manufacturing - By aligning training programs with the needs of domestic industries, the initiative aims to reduce India’s reliance on imported skilled labor.
Economic Empowerment - The program is expected to uplift youth from economically weaker sections by providing high-quality vocational education and employment opportunities.
Support for "Viksit Bharat@2047" - The initiative aligns with India’s long-term vision for a fully developed, technology-driven economy by the 100th year of independence.
Background And Rationale
India’s ITI network has been a cornerstone of vocational education since the 1950s, playing a crucial role in developing technical skills. Despite the presence of over 14,615 ITIs with 14.4 lakh enrollments, these institutions have often struggled with outdated infrastructure, limited industry connections, and inadequate funding. Previous attempts at modernization were constrained by budgetary limitations, leading to skill gaps and low employability rates.
With this new scheme, the government aims to address these challenges comprehensively, ensuring that vocational training is not just relevant but aspirational for India’s youth.
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