The Industrial Training Institutes (ITIs) in India are immensely important for imparting skills to youth and promoting employability at the threshold of economic growth and self-reliance for the country. Several initiatives have been put forth by the government for enhancing skill development through ITIs, but challenges exist. Below, we have outlined the key government initiatives, pointed out the loopholes, what the government is doing to solve them and highlighted the government’s five-year plan for ITI holders, with a focus on youth employment.

Government Initiatives for Skill Development Through ITIs:

The Indian Government, through the Ministry of Skill Development and Entrepreneurship (MSDE) and the Directorate General of Training (DGT), have come up with numerous programs to fortify the ITI ecosystem while skilliing the youth:

Skill India Mission (2015):

• This flagship training program is meant to train and upskill youth, including ITI students, to meet industry demands. Till now, around 1.4 crore youth have been trained, and around 3000 new ITIs have come up all over the country.
• ITIs are an important part of the chain, conducting vocational training in over 130 trades on a variety of stealing interventions, from six months to two years in duration, in order to prepare youth for industrial and technical work.

National Scheme for ITI Upgradation (Approved 2025):

• Announced in the Union Budget 2024–25 and 2025–26, this Centrally Sponsored Scheme is worth ₹60,000 crore (Central ₹30,000 crore, State ₹20,000 crore, Industry ₹10,000 crore) for upgrading 1,000 government ITIs and establishing five National Centres of Excellence (NCOEs) for skilling in Bhubaneswar, Chennai, Hyderabad, Kanpur, and Ludhiana.
• The scheme will focus on a hub-and-spoke format, aligning ITI courses to industry needs, mainly in sectors such as electronics, automotive, and renewable energy. The scheme looks to skill 20 lakh youth over five years.

Vocational Training Improvement Project (VTIP):

• Supported by the World Bank, VTIP focuses on upgrading 400 government ITIs with ₹2–3.5 crore per institute for infrastructure, trainer training, and curriculum development. Emphasises institutional reforms like forming Institute Management Committees (IMCs) with industry representatives.

Upgradation of 1,396 ITIs through Public-Private Partnership (PPP):

• Covers 1,227 ITIs, providing each with a ₹2.5 crore interest-free loan for modernisation. IMCs, chaired by industry partners, ensure academic and financial autonomy to align training with market needs.

Skill Strengthening for Industrial Value Enhancement (STRIVE):

• A World Bank-assisted project to improve ITI training quality in states like Tripura by funding infrastructure, new trades, and apprenticeship programs. For example, Tripura’s ITIs in Dharmanagar, Belonia, and Indranagar received ₹215 lakhs for upgrades.

Craftsmen Training Scheme (CTS):

• Initiated in 1950, CTS provides structured training in ITIs, culminating in the All India Trade Test (AITT) and National Trade Certificate (NTC). It includes apprenticeship training, with a one-year duration for ITI graduates.

Enhancing Skill Development Infrastructure in North-Eastern States and Sikkim:

• This scheme supports the upgradation of ITIs in terms of infrastructure and machinery in states like Nagaland and Tripura, with new trades introduced such as Mechanic Consumer Electronics and Computer Hardware Maintenance.

State Level Initiatives:

• States like Haryana (408 ITIs with 99,148 seats), Kerala, and Maharashtra are enhancing ITI training. Maharashtra signed MoUs with organisations like Schneider Electric to establish advanced labs in 20 ITIs, training 9,750 youth in modern technologies over four years.

Loopholes in the ITI Skill Development Ecosystem:

A few factors act as impediments to the skill development and employment ventures facing ITI graduates:

Outdated syllabus:

• Most of the ITI courses are not in tune with modern requirements of industries, such as automation, AI, or green technologies and hence are mismatched with the intended skills.

Inadequate infrastructure:

• Lower allocation of funds in the past resulted in very poor upgrading of infrastructure, and many ITIs today just do not have the tools, machinery, and infrastructure for a newer age trade.

Poor industry linkages:

• The absence of interactions between ITIs and industries results in poor placement ratios and a lack of practical exposure.

Trainer Quality:

• Many trainers lack up-to-date skills, impacting training quality. The focus on Training of Trainers (ToT) has been inconsistent.

Low Employability and Perception:

• Vocational training has traditionally been viewed as inferior to academic degrees, thereby limiting demand among employers for ITI graduates. Low placement rates and societal stigma further exacerbate the issue.

Data and Monitoring Gaps:

• The National Council for Vocational Training (NCVT) dashboard suffers from inaccurate and out-of-date information on placements and participation, thereby debilitating monitoring.

Geographical Disparities:

• Job opportunities are concentrated in urban areas, while many ITI graduates are from rural regions, limiting access.

Limited Entrepreneurship Support:

• Entrepreneurs from ITI face several barriers in starting up their businesses, including capital, mentorship, and market avenues.

Government Solutions to Address Loopholes:

The government is implementing targeted measures to address these challenges:

Curriculum Modernisation:

• The National Scheme for ITI Upgradation introduces industry-aligned trades, including AI, 5G, and cybersecurity, through “New Age ITIs” with relaxed affiliation norms.
• Flexi MoUs with industries allow ITIs to offer customised training programs certified by NCVT.

Infrastructure Upgrades:

• The ₹60,000 crore scheme provides need-based funding for infrastructure, capacity expansion, and capital-intensive trades, addressing past funding shortfalls.
• Five NCOEs will enhance facilities at NSTIs, focusing on advanced skilling and ToT.

Strengthening Industry Connect:

• The hub-and-spoke model and industry-led Special Purpose Vehicles (SPVs) ensure sustained industry involvement in ITI management and curriculum design.
• PPP models and IMCs empower industries to shape training, improving placement outcomes.

Trainer Capacity Building:

• The scheme includes training for 50,000 trainers at NSTIs to enhance teaching quality and align skills with industry standards.

Improving Employability and Perception:

• Mass media campaigns are recommended to highlight ITI success stories and career opportunities, shifting societal perceptions.
• The scheme aims to make ITIs “government-owned, industry-managed” aspirational institutes.

Enhanced Monitoring:

• NITI Aayog recommends upgrading the NCVT-MIS dashboard for accurate data on placements and participation. A time-bound grievance redressal mechanism is also proposed to address issues like equipment shortages.

Regional Focus:

• Schemes such as STRIVE and initiatives in the Northeastern states aim at darkening rural ITIs and thus reducing regional disparities.

Entrepreneurship Support:

• Pradhan Mantri Mudra Yojana, Start-Up India, and the like are being leveraged to provide financial and mentorship support to ITI graduates engaged in setting up businesses.

Five-Year Plan for ITI Holders (2025–2030)

The Government envisions the future of ITI holders in alignment with the Viksit Bharat@2047 goal with an emphasis on skilling and employment in fast-moving sectors. The highlights of the plans include

• Skilling 20 Lakh Youth:
• The National Scheme for ITI Upgradation, over five years, aims to skill 20 lakh youths at 1,000 upgraded ITIs in industry-relevant trades such as electronics, automotive, and renewable energy.
• Establishing Five NCOEs:
• At NSTIs, the centers will serve as hubs for advanced skilling, ToT, and R&D, thus making the ITI graduates fit for emerging technologies.
• Hub-and-Spoke Model:
• With 1,000 ITIs being upgraded through a hub-and-spoke model, greater coordination and resource-sharing will happen, thereby ensuring local industry alignment and job creation.
• Industry-Led Management:
• ITIs will transition to industry-managed models via SPVs, ensuring sustained industry involvement and better placement outcomes.
• Focus on New-Age Trades:
• Courses in AI, 5G, cybersecurity, and renewable energy will prepare ITI holders for future job markets.
• Apprenticeship Expansion:
• The Industry Apprenticeship Initiative (IAI) under STRIVE will scale up, connecting ITI graduates with industries for practical training and employment.
• Support for MSMEs:
• The scheme prioritizes Micro, Small, and Medium Enterprises (MSMEs) by providing employment-ready workers, fostering local job creation.
• Inclusive Skilling:
• Initiatives like Maharashtra’s MoUs focus on training for disabled students and women, ensuring inclusivity.

Conclusion

The Indian government’s initiatives, such as the Skill India Mission and the National Scheme for ITI Upgradation, are transforming ITIs into modern, industry-aligned institutions. While loopholes like outdated curricula and poor industry linkages persist, solutions like infrastructure upgrades, trainer training, and industry partnerships are addressing these gaps. Over the next five years, the focus on skilling 20 lakh youth, introducing new-age trades, and fostering entrepreneurship will empower ITI holders, aligning with India’s vision of becoming a global manufacturing and innovation hub by 2047. These efforts, if implemented effectively, will ensure ITI graduates are not only skilled but also gainfully em