Context: The Union Cabinet has approved the scheme for upgradation of 1,000 government Industrial Training Institutes (ITIs), and the setting up of five National Centers of Excellence (NCOE) as a Centrally Sponsored Scheme for transforming vocational education in India.
| Relevance of the Topic:Prelims: Key facts about National Scheme for Upgradation of ITIs and setting up of National Centres of Excellence. |
National Scheme for Upgradation of ITIs and setting up of National Centres of Excellence:
- Initiative of:
- Centrally Sponsored Scheme.
- Outlay: Rs. 60,000 crore (Central Share: Rs 30,000 crore, State Share: Rs 20,000 crore and Industry Share: Rs 10,000 crore). Additionally, 50% of the central share will be co-financed equally by the Asian Development Bank and the World Bank.
- The scheme will focus on:
- Upgradation of 1,000 Government ITIs in hub and spoke arrangement with industry aligned revamped trades (courses)
- Capacity Augmentation of 5 National Skill Training Institutes (NSTIs) and setting up of 5 National Centres of Excellence for Skilling in these institutes.
Key Focus Areas:
- Position existing ITIs as government-owned, industry-managed aspirational institutes of skills, in collaboration with State Governments and industry.
- Adopt an industry-led Special Purpose Vehicle (SPV) model for an outcome-driven implementation strategy, making it distinct from previous efforts to improve the ITI ecosystem.
- Skill 20 lakh youth through industry-aligned training programs over a five-year period. Ensure alignment between local workforce supply and industry demand, thereby facilitating industries, including MSMEs, in accessing employment-ready workers.
- Strengthen Training of Trainers by upgrading infrastructure in the five NSTIs and offering pre-service and in-service training to 50,000 trainers. This is to enhance the quality and consistency of vocational education.
Background: Need for upgrading Industrial Training Institutes (ITIs):
- ITIs have been the backbone of vocational education and training in India, operating under State Governments. ITI network has expanded by nearly 47% since 2014, reaching over 14,600 across India, with over 14 lakh enrolment. However, vocational training via ITIs has suffered from lack of systemic interventions to improve their infrastructure, course contents, and remains less aspirational.
- India has only 42% of Indian graduates considered employable. Hence there is an urgent need for aligned government, academia, and industry action. By upgrading ITIs and embedding on-the-job learning, soft skills, and future capabilities like green and digital skills, India can unlock its talent potential.
The schemes are a significant step towards revamping vocational education and bridging the critical skill-employability gap across sectors.