"PM-SETU Approves Strategic Investment Plans for ITI Clusters in Three States"
PM-SETU
Pradhan Mantri Skilling and Employability Transformation through Upgraded ITIs; flagship ITI modernisation scheme under MSDE.
Hub-and-Spoke Model
Cluster structure where one anchor Hub ITI coordinates investment and curriculum for surrounding Spoke ITIs.
India's vocational training system is anchored in Industrial Training Institutes (ITIs), a network of over 14,000 government and private institutions that provide trade-based technical education. ITIs are regulated by the Directorate General of Training (DGT) under the Ministry of Skill Development and Entrepreneurship (MSDE). MSDE, created in 2014 as a dedicated ministry, is the nodal body for all major skill development programmes. A key predecessor scheme, the Pradhan Mantri Kaushal Vikas Yojana (PMKVY), also sits under MSDE and targets alignment of workforce competencies with the National Skill Qualification Framework (NQSF). PM-SETU follows the same institutional home and the same NQSF-alignment goal, but focuses specifically on transforming the physical and academic infrastructure of government ITIs rather than short-term certification alone.
For decades, ITIs suffered from outdated equipment, curricula disconnected from industry needs, and low employability outcomes for graduates. Several committees and policy reviews noted that ITI graduates often lacked the practical, technology-oriented skills that modern manufacturing and services sectors require. The National Education Policy 2020 and successive skill development missions emphasised industry partnership as the primary lever for reform. PM-SETU operationalises this by inviting private companies to co-invest in ITI clusters, modernise infrastructure, and co-design courses aligned to their own hiring requirements.
PM-SETU (Pradhan Mantri Skilling and Employability Transformation through Upgraded ITIs) is a flagship scheme of the Government of India under MSDE. Its defining structural feature is the Hub-and-Spoke cluster model. In each cluster, one government ITI is designated the Hub. It receives the bulk of infrastructure investment and serves as the anchor for curriculum design and industry engagement. Several surrounding government ITIs are designated Spokes. They benefit from the Hub's upgraded resources, shared faculty, and standardised course offerings. This cluster architecture allows coordinated investment across multiple institutions without requiring each ITI to independently attract an industry partner.
The scheme operates through Strategic Investment Plans (SIPs), which are detailed project proposals submitted by an Anchor Industry Partner for a specific cluster. …
With reference to Pradhan Mantri Kaushal Vikas Yojana, consider the following statements :
1.It is the flagship scheme of the Ministry of Labour and Employment.
2.It, among other things, will also impart training in soft skills, entrepreneurship, financial and digital literacy.
3.It aims to align the competencies of the unregulated workforce of the country to the National Skill Qualification Framework.
Which of the statements given above is/are correct?
With reference to PM-SETU (Pradhan Mantri Skilling and Employability Transformation through Upgraded ITIs), consider the following statements:
1.It is implemented by the Ministry of Labour and Employment.
2.It adopts a Hub-and-Spoke cluster model in which a Hub ITI is supported by a network of Spoke ITIs.
3.Strategic Investment Plans (SIPs) are approved directly by the National Steering Committee without any prior state-level evaluation.
4.A Shareholders' Agreement among the industry partner, the state government, and the Union Government formally commences implementation for each cluster.
Which of the statements given above is/are correct?
Match the following skill development schemes with their correct nodal ministry:
Scheme — Ministry
1.PM-SETU — (i) Ministry of Labour and Employment
2.PMKVY — (ii) Ministry of Skill Development and Entrepreneurship
3.PM-SYM — (iii) Ministry of Labour and Employment
4.MUDRA Yojana — (iv) Ministry of Finance
Select the correct matching:
Consider the following statements regarding the approval process for Strategic Investment Plans (SIPs) under PM-SETU:
1.An Anchor Industry Partner submits a SIP for a specific ITI cluster.
2.The SIP is first evaluated and recommended by a State Steering Committee.
3.Final approval is granted by the National Steering Committee chaired by the Secretary of MSDE.
4.The Shareholders' Agreement is signed before the SIP is submitted to the State Steering Committee.
Which of the statements given above is/are correct?
Which of the following correctly describes the Hub-and-Spoke cluster model under PM-SETU?
Want the full note, Prelims Facts & MCQ answers?
Create a free account — takes less than a minute.
Create free account