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Indian Express
12-05-2025
- Business
- Indian Express
ITI upscaling project: Plugging the skill gap
Traditional workshops are today giving way to manufacturing units that demand digital fluency, competency in data analysis, AI and robotics-related skills and the ability to work with climate-friendly engineering technologies. However, for at least a decade, surveys and reports have been flagging the skill deficits of the Indian workforce. Only a small fraction of graduates from the Industrial Training Institutes (ITI) get placed in the cutting-edge economy. The deficit also means that a large section of the youth lacks avenues and support systems to realise its potential. The government's move to overhaul ITIs was, therefore, long overdue. Last week, the Union Cabinet approved the National Scheme for Industrial Training Institute Upgradation and sanctioned the setting up of five National Skilling Training Institutes (NSTI). The Rs 60,000-crore scheme aims to forge links between the technical education ecosystem and industry. Established shortly after Independence, ITIs were intended to serve as vocational training centres for the emerging industrial sector. Today, India has close to 15,000 such institutes. Nearly 80 per cent of them came up after 2006-2007 when the National Council for Vocational Training relaxed rules, leading to a mushrooming of private ITIs. However, abetted by a faulty monitoring system, many flouted even the most basic norms. Audits conducted by the Directorate General of Training revealed that accreditation was granted to ITIs even while they were under construction or lacked basic safety measures. The government's move to restrict the new programme to 1,000 ITIs could streamline the system. Twenty lakh youth will be skilled in the revamped ITIs over five years. By conservative estimates, this would cater to about a fifth of the human capital needs of industry. The ITI upscaling project should, therefore, be seen as a beginning. Several experts have argued that the task of schooling professionals for the smart economy is too enormous to be left to government alone. A tenth of the new programme's costs will be borne by the private sector, which has been accorded a more active role in designing courses and training faculty. The government must nudge industry towards enhancing its engagement with skill development.
Time of India
07-05-2025
- Business
- Time of India
Nat'l skill training institute to come up in city
Bhubaneswar: To enhance the skills of youths, a National Skill Training Institute (NSTI) will be set up in five cities, including Bhubaneswar. The other cities are Chennai, Hyderabad, Kanpur and Union cabinet, chaired by Prime Minister Narendra Modi, decided so while approving the 'National Scheme for Industrial Training Institute (ITI) Upgradation and the setting up of five National Centres of Excellence for Skilling as a centrally-sponsored Mohan Charan Majhi expressed gratitude to the Prime Minister for approving the national scheme for ITI upgradation with a total outlay of Rs 60,000 crore and for establishing an NSTI in Bhubaneswar. "This visionary step will empower Odisha's youth, enhance employability, and position the state as a hub for advanced skills. A proud moment for Odisha as we contribute to building a future-ready, skilled Bharat," he national scheme will be implemented as a centrally-sponsored scheme, as per the announcement made under Budget 2024-25 and Budget 2025-26, with an outlay of Rs 60,000 crore (Central share: Rs 30,000 crore, state share: Rs 20,000 crore, and industry share: Rs 10,000 crore). Co-financing to the extent of 50 per cent of the central share will be provided by the Asian Development Bank and the World Bank equally, according to the official education minister Dharmendra Pradhan said the approval will catalyse the skill development ecosystem, address long-standing challenges, bridge the industry-workforce gap in traditional and new-age trades, position our ITIs as global centres of excellence, and help skill and upskill over 20 lakh youth in the next five years. "Skill development is no longer an option but a national imperative. This visionary decision will create a robust pipeline of future-ready workforce and strengthen India's position as the skill capital of the world," he the scheme, infrastructure upgradation for improved training of trainers' facilities will be undertaken in five NSTIs. These national institutes will include the setting up of five national centres of excellence for skilling within these scheme will focus on upgradation of 1,000 govt ITIs in a hub and spoke of arrangement with industry-aligned revamped trades (courses) and capacity augmentation of five NSTIs. The scheme will aim to ensure alignment between local workforce supply and industry demand, thereby facilitating industries, including MSMEs, in accessing employment-ready workers.
