The PM SETU Scheme 2026 is one of India’s major initiatives for transforming Industrial Training Institutes (ITIs) into modern, industry-aligned skill development centres.
PM-SETU stands for Pradhan Mantri Skilling and Employability Transformation through Upgraded ITIs. The scheme focuses on upgrading Government ITIs with modern infrastructure, advanced equipment, digital learning facilities and industry-oriented training.
The scheme was launched on October 4, 2025, and has a total programme outlay of ₹60,000 crore, with contributions from the Centre, States and industry.
What Is PM SETU Scheme 2026?
PM SETU is designed to improve the quality and relevance of vocational education in India.
Under the scheme, selected Government ITIs are being transformed through a Hub-and-Spoke model. The programme aims to upgrade 1,000 Government ITIs, consisting of:
- 200 Hub ITIs
- 800 Spoke ITIs
The upgraded ITIs are expected to receive modern laboratories, smart classrooms, digital content, improved equipment and courses aligned with industry requirements.
The scheme also has a second component focused on upgrading five National Skill Training Institutes (NSTIs).
PM SETU Scheme 2026 Objectives
The major objectives of PM SETU include:
- Improving the quality of vocational training.
- Modernising ITI infrastructure and equipment.
- Introducing industry-aligned courses.
- Promoting training in emerging technologies and occupations.
- Strengthening industry partnerships.
- Improving employability and employment outcomes.
- Strengthening trainer development through upgraded NSTIs.
The overall objective is to make vocational education more closely connected with the changing requirements of employers and industries.
PM SETU Scheme 2026: ₹60,000 Crore Investment
PM SETU has a total outlay of ₹60,000 crore.
The funding structure includes:
| Funding Source | Amount |
|---|---|
| Central Government | ₹30,000 crore |
| State Governments | ₹20,000 crore |
| Industry | ₹10,000 crore |
| Total | ₹60,000 crore |
The scheme is proposed to be implemented in a phased manner over five years.
The Centre’s share is also supported through financing arrangements involving the Asian Development Bank and World Bank, according to the Ministry of Skill Development and Entrepreneurship.
How Will PM SETU Upgrade ITIs?
PM SETU uses a Hub-and-Spoke model.
A Hub ITI acts as the main upgraded institution, while associated Spoke ITIs are connected to it.
A Hub can provide access to facilities such as:
- Modern laboratories
- Smart classrooms
- Digital learning systems
- Advanced equipment
- Innovation facilities
- Trainer development
- Industry exposure
- Placement-related facilities
Spoke ITIs can benefit from access to resources and facilities developed through the cluster.
This model is intended to create stronger connections between multiple ITIs within a region.
PM SETU and New-Age Courses
Another important feature of PM SETU is the introduction of industry-aligned long-term and short-term courses, particularly in new and emerging sectors.
As technology and industrial requirements change, ITI training needs to cover skills beyond traditional trades.
The scheme therefore focuses on demand-driven skilling and emerging occupational areas.
Depending on the upgraded institute and approved programmes, students may get exposure to modern technologies and industry-oriented training.
However, the exact courses available will depend on the individual ITI and its approved cluster plan.
PM SETU Scheme 2026: Five NSTIs
PM SETU also includes Component II, which focuses on capacity augmentation of five National Skill Training Institutes.
The five NSTIs are located in:
- Bhubaneswar
- Chennai
- Hyderabad
- Kanpur
- Ludhiana
The component includes establishing sector-specific National Centres of Excellence and strengthening advanced training of trainers.
International partnerships are also being used to support institutional and training capacity.
Who Can Benefit From PM SETU?
PM SETU is primarily an ITI transformation and institutional upgradation scheme, rather than a direct cash-benefit scheme for individual applicants.
The potential beneficiaries include:
- ITI students
- ITI trainees
- Apprentices
- Vocational learners
- ITI instructors and trainers
- Employers looking for skilled workers
- Industries participating in ITI clusters
Students studying in upgraded ITIs may benefit from better equipment, modern training methods and stronger industry exposure.
Is There PM SETU Registration 2026 for Students?
A common question is whether students need to complete a separate PM SETU registration to receive money or benefits.
PM SETU is primarily focused on upgrading selected Government ITIs and NSTIs. It is not structured as a direct individual unemployment allowance or cash-transfer scheme.
Therefore, students should not assume that there is a separate PM SETU application form for receiving ₹10,000, ₹20,000 or another direct payment.
For admission to ITI courses, candidates should follow the normal State ITI admission process and check whether their institute is included in PM SETU.
PM SETU Scheme 2026 Latest Update
The implementation of PM SETU has progressed during 2026.
According to a PIB update published on October 3, 2026, a total of 850 ITIs had been identified, consisting of 172 Hub ITIs and 678 Spoke ITIs. The update also stated that 14 ITI clusters had been approved at that stage.
The Ministry has also reported that 36 States and Union Territories had identified clusters and created dedicated State budget heads, while 35 had constituted State Steering Committees.
This indicates that the scheme has moved beyond the initial planning stage toward implementation across different regions.
PM SETU in Madhya Pradesh
Madhya Pradesh is among the States included in PM SETU implementation.
As per a Ministry update from July 2026, Madhya Pradesh had identified 20 clusters comprising 20 Hub ITIs and 81 Spoke ITIs. The State had also floated a Request for Proposal (RFP) for inviting industry proposals.
This is particularly relevant for ITI students and trainees in Madhya Pradesh because selected institutions can be upgraded under the PM SETU framework.
PM SETU vs Regular ITI
PM SETU does not replace the ITI system. Instead, it is intended to upgrade selected Government ITIs.
| Regular ITI System | PM SETU Upgraded ITI |
|---|---|
| Traditional vocational training | Industry-aligned training |
| Existing infrastructure | Modernised infrastructure |
| Conventional equipment | Modern equipment and labs |
| Standard classrooms | Smart/digital learning facilities |
| Limited industry linkage | Stronger industry participation |
| Traditional courses | New-age and emerging courses |
The exact facilities and courses will vary by the selected ITI and approved cluster.
What Does PM SETU Mean for ITI Students?
For students, the biggest potential advantage is access to more modern vocational training.
An upgraded ITI may provide better exposure to:
- Modern machines
- Digital tools
- Industry practices
- Emerging technologies
- Practical laboratory work
- Industry interaction
- Apprenticeship opportunities
- Employment-oriented skills
However, PM SETU should not be interpreted as a guarantee of a government job. Employment outcomes depend on the student’s skills, course, industry demand, recruitment and other factors.
Frequently Asked Questions
What is PM SETU?
PM SETU stands for Pradhan Mantri Skilling and Employability Transformation through Upgraded ITIs. It is a Government of India scheme for upgrading selected Government ITIs and strengthening vocational training.
What is the total budget of PM SETU?
The scheme has a total outlay of ₹60,000 crore, comprising Central, State and industry contributions.
How many ITIs will be upgraded under PM SETU?
The scheme targets 1,000 Government ITIs, including 200 Hub ITIs and 800 Spoke ITIs.
Is PM SETU a direct cash scheme for unemployed youth?
No. PM SETU is primarily an ITI and vocational-training upgradation programme. It does not operate as a general direct cash-transfer scheme for unemployed youth.
Is Madhya Pradesh included in PM SETU?
Yes. Madhya Pradesh is included in the scheme. As of July 2026, the State had identified 20 clusters with 20 Hub ITIs and 81 Spoke ITIs.
Will PM SETU guarantee a government job?
No. The scheme aims to improve training quality, industry alignment and employability, but it does not guarantee a government job to every ITI student.
Conclusion
The PM SETU Scheme 2026 is focused on transforming India’s Government ITIs into more modern and industry-oriented vocational training institutions.
With a ₹60,000 crore outlay, the scheme aims to upgrade 1,000 Government ITIs through a Hub-and-Spoke model and strengthen five NSTIs through National Centres of Excellence.
For ITI students, the initiative could mean better infrastructure, modern equipment, digital learning, emerging courses and stronger industry connections.
Students interested in ITI admission should continue to follow their respective State ITI admission portals and official MSDE/DGT updates, while checking whether their institute is part of the PM SETU cluster.