PM-SETU seeks to address this gap by placing industry participation at the centre of ITI modernisation. (AI Image)
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Nationally, the scheme envisages upgrading 1,000 government ITIs—200 Hub ITIs and 800 Spoke ITIs—with modern laboratories, smart classrooms, digital learning resources and industry-aligned courses. 32 ITIs have so far been identified across the eight UP clusters, according to the Union Ministry of Skill Development and Entrepreneurship. The August 2026 PM-SETU Industry Conclave in Lucknow brought together government, industry, defence public-sector undertakings, sector skill councils and other stakeholders to strengthen this partnership. A cluster consisting of one Hub ITI and four Spoke ITIs can attract investment of up to Rs 241 crore, with a funding pattern of 50 percent from the Government of India, 33 percent from the state government and 17 percent from industry partners, according to the Union government. The proposed Special Purpose Vehicle gives the Anchor Industry Partner 51 percent ownership, while the Centre and State each hold 24.5 percent. As of the August 2026 industry conclave, 32 ITIs across the eight clusters had been identified, with seven of the eight clusters still open for collaboration.
Because the state is simultaneously expanding its manufacturing, electronics, defence, engineering, infrastructure, services and MSME sectors, the initiative is significant for Uttar Pradesh. The PM-SETU model therefore seeks to create a continuous chain: industry identifies demand → ITI designs training → students receive practical exposure → industry provides apprenticeship/on-the-job opportunities → trained youth enter employment or entrepreneurship. For the state, the success of PM-SETU will depend on sustained industry participation, quality instructors, updated curricula, adequate practical training, apprenticeships and credible placement pathways.
Selection is to be undertaken by state governments in consultation with industry and according to emerging skill requirements and local industrial potential. Uttar Pradesh is moving towards a new model of vocational education in which Industrial Training Institutes (ITIs) are being developed not merely as training centres, but as industry-linked institutions designed around the actual skill requirements of regional economies. Under the Pradhan Mantri Skilling and Employability Transformation through Upgraded ITIs (PM-SETU) scheme, eight clusters have been identified in the state covering Kanpur, Muzaffarnagar, Meerut, Lucknow, Gorakhpur, Varanasi, Prayagraj and Agra. The Directorate General of Training has already issued cluster-specific Requests for Proposals for these eight locations. The central challenge is to ensure that the workforce emerging from vocational institutions possesses the skills required by these expanding industries. PM-SETU seeks to address this gap by placing industry participation at the centre of ITI modernisation. From individual ITIs to integrated clusters The basic PM-SETU approach is a Hub-and-Spoke model. Uttar Pradesh is adapting this model to its own industrial geography. Each cluster is designed around one Hub ITI and four Spoke ITIs under the PM-SETU framework. This creates the possibility of sharing specialised equipment, laboratories, instructors, industry exposure and training resources among several ITIs rather than attempting to provide every facility at every institution. The eight clusters also provide a broad geographical spread—from western UP’s industrial belt to central, eastern and southern parts of the state. The objective is to connect vocational training with the economic character of each region. Eight clusters, one common objective The eight selected locations represent different industrial and employment ecosystems. Kanpur has a long-established base in engineering, manufacturing, leather, textiles, defence production and emerging industrial activities. Its PM-SETU cluster can potentially support skills in precision engineering, advanced manufacturing, automation, maintenance and other technologies required by modern industries. Meerut combines manufacturing, engineering, sports goods, electrical and other MSME activities with its proximity to the National Capital Region. Its cluster can provide a platform for modernising technical skills required by manufacturing and service enterprises. Muzaffarnagar and the surrounding western Uttar Pradesh region have a strong agricultural-industrial and MSME base. Skill development linked to food processing, engineering, electrical trades, manufacturing and modern agricultural technologies can help connect local youth with regional employment opportunities. Lucknow, as the state capital and an expanding centre for services, technology, electronics, defence-related activities and public-sector institutions, provides scope for advanced digital, electronics, automation and technical-service skills. Gorakhpur is emerging as an important industrial and infrastructure centre for eastern Uttar Pradesh. Its cluster can help create skilled manpower for manufacturing, engineering, construction-related technologies, electrical trades and other growing sectors. Varanasi combines traditional industries and handicrafts with tourism, services, modern infrastructure and emerging industrial activity. The PM-SETU approach can provide a bridge between traditional economic activities and new technology-driven employment. Prayagraj has an important institutional, infrastructure and services economy, along with a large surrounding employment catchment. Modern ITI training can support construction, electrical, mechanical, logistics, digital and other technical occupations. Agra, with its manufacturing, footwear, leather, tourism and MSME ecosystem, offers another distinct environment in which industry-linked vocational courses can be designed around actual local demand. The purpose is not to impose one uniform training model across the state. Rather, the cluster approach allows the training ecosystem to respond to the economic characteristics of each region. Industry moves from employer to partner One of the most important changes under PM-SETU is the proposed role of industry. The programme seeks to move beyond the traditional arrangement in which an ITI trains students and industries later recruit from among them. Under the new model, Anchor Industry Partners (AIPs) are expected to participate in the development, governance and operation of ITI clusters. Their involvement can extend to identifying skill requirements, curriculum development, modern equipment, training of trainers, apprenticeships, on-the-job training and placement linkages. Industry representatives highlighted requirements in areas including aerospace systems, electronics manufacturing, precision engineering, defence production, advanced welding, mechatronics and drone technologies. This is particularly relevant for Uttar Pradesh as industrial investment increasingly requires technicians who can work with automation, electronics, robotics, precision machinery and digitally enabled production systems. A new financing and governance structure PM-SETU also introduces a different institutional framework for industry participation. This structure is intended to give industry a substantive role in cluster development and operations rather than limiting participation to financial support. For Uttar Pradesh, this creates an opportunity to bring major manufacturers, defence-sector companies, technology enterprises and local industrial associations into the vocational-training ecosystem. Linking training with employment The ultimate importance of PM-SETU will lie in what happens after training. A modern machine in an ITI is useful only when students learn to operate technology that is actually used in factories and enterprises. Similarly, a revised curriculum becomes meaningful when it improves apprenticeship opportunities, workplace exposure and employment prospects. This employment-oriented approach is particularly relevant for Uttar Pradesh, which has a large young workforce and a rapidly diversifying economy. Connecting UP’s industrial expansion with its youth The state is witnessing expansion in areas such as electronics, defence manufacturing, engineering, renewable energy, automobiles, logistics, food processing, digital services and MSMEs. The Defence Minister, speaking at the Lucknow PM-SETU conclave, specifically highlighted the importance of skilled manpower for sectors such as defence manufacturing, aerospace, electronics, drones, robotics, precision engineering and automation, while noting the growth of UP’s manufacturing and defence ecosystem. This makes the timing of the eight-cluster model important. The state is not simply seeking more trained people; it is seeking people trained for the industries that are emerging and expanding within and around the state. The presence of NSTI Kanpur as one of five National Training Institutes selected for capacity augmentation under PM-SETU also gives Uttar Pradesh a role in the wider national skill-development architecture. The programme envisages sector-specific Centres of Excellence and advanced training of trainers at these institutions. Future Course The immediate priority for Uttar Pradesh is to bring suitable Anchor Industry Partners into all eight clusters and develop detailed Strategic Investment Plans. It will also require strong coordination between the Skill Development Department, ITIs, district administrations, industries, MSMEs and sector skill organisations. The eight-cluster model consequently represents a shift in the way vocational education can be organised in Uttar Pradesh. Instead of treating ITIs as isolated institutions, the PM-SETU framework seeks to build regional skill ecosystems, with the Hub ITI providing advanced capabilities and Spoke ITIs extending access. For a state with a large youth population and a rapidly changing industrial landscape, this industry-linked approach can help make vocational education more responsive to local economic opportunities. Its central proposition is straightforward: the ITI of the future should train for the workplace that exists—and, increasingly, for the workplace that is emerging. (District Transformation)