The PM SETU Scheme 2026 for ITI is one of the Government of India’s major initiatives to modernize Industrial Training Institutes (ITIs) and make vocational education more closely connected with industry requirements. PM-SETU stands for Pradhan Mantri Skilling and Employability Transformation through Upgraded ITIs.
The scheme was launched in October 2025 with a total outlay of ₹60,000 crore. The funding structure includes ₹30,000 crore from the Central Government, ₹20,000 crore from State Governments and ₹10,000 crore from industry.
What Is PM SETU Scheme 2026?
PM-SETU aims to transform selected Government ITIs into modern, industry-aligned skill training institutions. The focus is not simply on repairing existing ITI infrastructure but on improving laboratories, machines, classrooms, curriculum, training methods and industry connections.
The scheme targets 1,000 Government ITIs through a Hub-and-Spoke model consisting of 200 Hub ITIs and 800 Spoke ITIs. Hubs are expected to provide advanced facilities and support the connected Spoke ITIs.
The government expects the scheme to help create a stronger pipeline of employment-ready skilled workers for India’s growing industrial and technology sectors.
Latest PM SETU 2026 Update
According to the latest PIB update published on 3 October 2026, 850 ITIs have been identified, consisting of 172 Hub ITIs and 678 Spoke ITIs.
The government has also reported approval of 14 Strategic Investment Plans for ITI clusters, involving an investment of about ₹3,446 crore. The scheme has moved from its pilot phase toward a nationwide rollout across the identified clusters.
This means implementation is progressing, but all 1,000 ITIs are not yet fully upgraded.
What Benefits Will ITI Students Get?
PM-SETU can provide several important benefits to students studying in selected Government ITIs.
1. Modern Laboratories and Equipment
Selected ITIs are being upgraded with modern laboratories, workshops and equipment according to industry requirements. This can give students more practical exposure.
2. Industry-Aligned Courses
The scheme promotes new long-term and short-term courses based on emerging industry demand. The Directorate General of Training has introduced new-age courses covering areas such as Artificial Intelligence, Cyber Security, Electric Vehicles, Robotics, Semiconductor Technology, Drones, IoT, 5G, Additive Manufacturing and Green Hydrogen.
3. Better Industry Connection
Industry participation is an important part of PM-SETU. Industry partners can participate in curriculum development, training, infrastructure development and industry exposure.
This is designed to reduce the gap between what students learn in an ITI and the skills companies actually require.
4. Apprenticeship and Employment Opportunities
Because industry partners are involved in the upgraded ITI ecosystem, students may receive better opportunities for industry exposure, apprenticeships and employment. However, PM-SETU does not guarantee a government job or automatic employment.
PM SETU Hub and Spoke Model
Under the scheme, one Hub ITI can work with several Spoke ITIs. The Hub can provide advanced infrastructure, innovation facilities, trainer development, placement support and other resources, while Spoke ITIs expand access to training.
The government plans to upgrade 200 Hub ITIs and 800 Spoke ITIs under this model.
Is PM SETU a Direct Financial Scheme for ITI Students?
No. PM-SETU should not be understood as a scheme that directly gives every ITI student ₹10,000, ₹50,000 or another fixed cash benefit.
Its primary purpose is upgradation of Government ITIs, modernisation of training infrastructure, industry participation and employment-oriented skill development.
Therefore, students should check their ITI and State Skill Development/Training Department for information about courses and facilities available under PM-SETU.
PM SETU 2026 and Madhya Pradesh
Madhya Pradesh is also part of PM-SETU implementation. Earlier official information reported that the state had identified 20 clusters comprising 20 Hub ITIs and 81 Spoke ITIs and had invited industry proposals.
The DGT’s PM-SETU information also lists RFPs for several Madhya Pradesh clusters, including Rewa, Indore, Sagar and Ujjain.
Who Can Benefit From PM SETU?
The main beneficiaries are students and trainees studying in selected Government ITIs. The upgraded ecosystem is particularly relevant for students pursuing technical and industrial trades where modern machinery, digital systems and industry-specific skills are important.
Existing ITI trades may also be modernized, while new courses can be introduced according to regional industry demand.
Conclusion
The PM SETU Scheme 2026 for ITI is focused on transforming Government ITIs into modern, industry-oriented training institutions. With a ₹60,000 crore overall outlay, the scheme targets 1,000 Government ITIs, including 200 Hubs and 800 Spokes.
The latest October 2026 update shows that implementation is moving forward, with 850 ITIs already identified and 14 cluster investment plans approved. For ITI students, the biggest potential advantages are better equipment, modern laboratories, new-age courses, stronger industry connections and improved pathways toward apprenticeships and employment.