The Union Cabinet has officially sanctioned a comprehensive financial allocation under the Pradhan Mantri Skilling and Employability Transformation through Upgraded ITIs (PM-SETU) initiative to modernize vocational training hubs across multiple states. Supervised by a dedicated National Steering Committee, the newly approved Strategic Investment Plans allocate significant capital toward upgrading Industrial Training Institute (ITI) clusters across Rajasthan, Uttar Pradesh, and Telangana, expanding total program funding past ₹2,170 crore. The policy framework mandates the integration of high-demand industry modules—including automated manufacturing, solar technology installation, robotics, and cloud interface management—directly into regional technical curriculums. Educational policy experts and state administrators note that establishing modern laboratory infrastructure and public-private industry partnerships will bridge skill gaps, enhance youth employability, and support long-term regional industrial growth. Transformative Policy Push to Align Vocational Training with Industry Demand In a major initiative to upgrade India’s technical education ecosystem, the Union Cabinet has approved the operational frameworks and budgetary allocations for the Pradhan Mantri Skilling and Employability Transformation through Upgraded ITIs (PM-SETU) scheme. Managed by the Ministry of Skill Development and Entrepreneurship (MSDE) with a total outlay of ₹60,000 crore over five years, the centrally sponsored scheme is designed to address skill-job mismatches by modernizing government Industrial Training Institutes (ITIs) and National Skill Training Institutes (NSTIs) across all states and Union Territories. Hub-and-Spoke Clustering and Industry-Led Governance Under Component I of the PM-SETU framework, the government will deploy a "Hub and Spoke" clustering model across 200 geographic skill clusters. Each central "Hub" ITI will house advanced innovation labs, incubation infrastructure, and placement cells, extending state-of-the-art learning tools to four surrounding "Spoke" ITIs. To guarantee market relevance, management of these upgraded clusters will shift to Special Purpose Vehicles (SPVs) wherein private industry partners hold a 51% controlling stake. This ensures that curricula, workshop equipment, and certification benchmarks directly match real-time hiring needs in emerging sectors like artificial intelligence, semiconductor fabrication, green hydrogen, and electric mobility. Augmenting Instructor Training and Global Skill Standards Component II of the approved framework focuses on modernizing five major National Skill Training Institutes (NSTIs) into international-standard "Centres of Excellence" dedicated to advanced instructor training. By establishing specialized "Training of Trainers" (ToT) modules in partnership with global technical bodies, PM-SETU ensures that vocational teachers are proficient in state-of-the-art manufacturing technologies and digital pedagogical methods. With the National Steering Committee (NSC) already clearing initial Strategic Investment Plans (SIPs) for regional clusters, the nationwide rollout aims to enhance student employability and create a future-ready workforce aligned with the Viksit Bharat 2047 vision.