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The Union Cabinet has approved a scheme for upgrading 1,000 ITIs.
The scheme includes the establishment of 5 National Centres of Excellence.
A budget of ₹60,000 crore will be allocated to support this initiative.
Union Cabinet ITI Scheme 2025: The Union Cabinet chaired by Prime Minister Shri Narendra Modi has approved the scheme for upgradation of 1,000 government Industrial Training Institute’s (ITI’s) and the setting up of five National Centers of Excellence(NCOE) for skilling as a centrally sponsored scheme for transforming vocational education in India.
The scheme was made under budget 2024-2025 and budget 2025-2026, with outlay of Rs. 60,000 crore (Central Share: Rs.30,000 crore, State Share: Rs.20,000 crore and Industry Share: Rs.10,000 crore).
Union Cabinet ITI Scheme 2025: How this scheme helps bridge real skill-employability gaps across sectors
The scheme is designed to ensure ITIs meet the demand for skilled manpower, which is aligned with the nation’s journey in becoming a global manufacturing and innovation powerhouse that will help create a pipeline of skilled workers aligned with industry demand, thereby addressing skill shortages in high-growth sectors such as electronics, automotive, and renewable energy.
Roop Kaistha, Regional Managing Director, APAC, AMS, said, “This scheme is a timely investment in building a future-ready workforce. With only 42 per cent of Indian graduates considered employable, the need for aligned government, academia, and industry action is urgent. By upgrading ITIs and embedding on-the-job learning, soft skills, and future capabilities like green and digital skills, India can unlock its talent potential.”
The scheme focuses on increasing and improving the quality of vocational training which can prove to be an immense driver of economic growth and productivity. Global models like Brazil’s SENAI, where 80 per cent of the vocational trainees secure employment, shows the impact of practical skills in overall growth of the industry-led skilling.
NCOE’s have played a significant role in various fields, particularly in sports, cybersecurity, and the animation sector. By providing specialized training, high-performance facilities, and mentorship, they help build a strong talent pool and help Indian athletes achieve excellent performance at the International level.
Dr. Nipun Sharma, Chief Executive Officer, TeamLease Degree Apprenticeship, talked about the approval of the scheme of upgrading 1,000 ITI’s and setting up 5 NCOE’s.
“The Union Cabinet’s ₹60,000 crore national scheme to upgrade ITIs and establish five Centers of Excellence is a significant step to bridge the critical skill-employability gap across sectors. With demand for skilled workers exceeding supply by nearly 30 million individuals by 2025, and specialized sectors like electronics facing an 8-million workforce shortfall by 2027-28, this initiative directly addresses our most pressing employability challenges. By upgrading ITIs and establishing Centers of Excellence, we’re creating infrastructure to support the much needed upskilling of our youth, and creating a platform for employability enhancement programs like apprenticeships, which has already expanded 26-fold since 2018.”
In summary, the scheme supports the Prime Minister’s ‘Viksit Bharat’ vision by prioritizing skill development as a crucial driver to address both present and emerging industry demands.
