India’s National Skilling Policy and ITI Upgradation
India has recently taken steps to transform its skilling infrastructure. A National Steering Committee (NSC) was formed in July 2025 to guide this transformation. The focus is on upgrading Industrial Training Institutes (ITIs) and establishing National Centres of Excellence (CoEs) to meet industry needs. This initiative aims to create a skilled workforce aligned with modern manufacturing and industrial demands.
Formation of National Steering Committee
The NSC comprises representatives from central ministries, industry leaders, and state officials. It is chaired by the Skill Secretary, Rajit Punhani. Members include officials from education, commerce, heavy industries, labour ministries, and private firms like Bajaj Auto and Hero MotoCorp. The committee’s role is to issue guidelines, set policies, approve state bids, and oversee scheme implementation. It ensures coordination between central, state, and cluster-level bodies.
Upgradation of Industrial Training Institutes
The government approved a Rs 60,000 crore scheme to upgrade 1,000 government ITIs over five years. The funding is shared between the Centre (Rs 30,000 crore), states (Rs 20,000 crore), and industry through CSR contributions. This scheme focuses on modernising ITIs using a hub-and-spoke model. It will introduce industry-aligned trades and update curricula to improve employability. States have been asked to identify ITIs and submit bids for upgradation.
National Centres of Excellence for Skilling
Five CoEs will be set up at existing National Skill Training Institutes (NSTIs) in Bhubaneswar, Chennai, Hyderabad, Kanpur, and Ludhiana. These centres will specialise in advanced skill training, primarily for the manufacturing sector. NSTIs focus on training instructors in hands-on skills and teaching methods. The CoEs aim to enhance sector-specific skills and encourage global partnerships.
Role of Industry and Curriculum Reform
The policy emphasises industry involvement in shaping curricula, certification, and training standards. This approach ensures that training matches actual job market requirements. It moves beyond mere funding to active industry participation in skill development. The goal is to create future-ready ITIs that produce employable youth aligned with evolving industrial needs.
Coordination and Oversight
The NSC will oversee the entire transformation process. It can reallocate funds within the scheme and modify components as needed for successful implementation. It reviews state proposals and gives final approvals. The committee also facilitates alignment between various government levels and industry clusters to ensure smooth execution.
Background of NSTIs
The first NSTI was established in 1963. There are currently 33 NSTIs across India. Their primary function is to train instructors in skill transfer techniques. Upgrading NSTIs with CoEs will enhance their capacity to deliver specialised training and meet sector-specific demands.
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