India’s skill development ecosystem is strengthening through NAPS 2.0, CTS, ITI expansion and PM–SETU, with growing focus on apprenticeships, employability, industry linkages and future-ready workforce development.

Skill Development | Vocational Training | Education | Employment

Skill India, NAPS 2.0, CTS, ITI, PM–SETU, Apprenticeship, Vocational Training, Employability, Viksit Bharat 2047

India strengthens skill development ecosystem to build an employable and future-ready workforce

India’s skilling and vocational training ecosystem is undergoing a major transformation, with policy measures increasingly focused on industry alignment, employability, apprenticeship-led learning and upgraded training infrastructure. Key initiatives such as the National Apprenticeship Promotion Scheme, Craftsmen Training Scheme, PMKVY 4.0 and the newly launched PM–SETU are expected to play a central role in strengthening the country’s workforce readiness.

The ongoing reforms aim to improve the scale, quality and transparency of skill development programmes while building stronger connections between training institutions and industry demand. As India works towards the vision of Viksit Bharat 2047, workforce development is being positioned as a key driver of productivity, formal employment and inclusive economic growth.

NAPS 2.0 strengthens apprenticeship-led skill development

The National Apprenticeship Promotion Scheme, launched in August 2016, is currently being implemented in its second phase as NAPS 2.0. The scheme promotes apprenticeship training by providing partial stipend support to apprentices, helping young people gain practical, industry-linked learning experience.

Under NAPS, the Government contributes 25% of the stipend, up to ₹1,500 per month, directly to apprentices’ bank accounts through the NAPS portal. This direct support is aimed at encouraging more employers and candidates to participate in apprenticeship-based training.

Since its launch, more than 54.41 lakh apprentices have been engaged across sectors including automotive, IT-ITeS, electronics, retail and manufacturing. In FY 2025–26 alone, around 12.35 lakh apprentices were engaged, while about 6.42 lakh apprentices completed their on-the-job training.

The Certificate of Proficiency, launched in September 2025, has further strengthened recognition for apprentices completing the full duration of training and practical assessment. As of March 31, 2026, 67,711 Certificates of Proficiency had been generated.

CTS continues to support long-term vocational education

The Craftsmen Training Scheme remains one of India’s most important long-term vocational education programmes. Introduced in 1950, CTS was designed to ensure a steady flow of skilled workers for industry, improve production quality and reduce unemployment among educated youth through employable training.

Industrial Training Institutes continue to serve as the backbone of this system. Under CTS, training is currently imparted across 169 courses through 14,688 ITIs in India. These include 3,345 Government ITIs and 11,343 Private ITIs.

The training ecosystem has also been updated to match evolving industry needs. As of March 2026, 14 CTS courses had been newly developed and 22 existing courses revised over the past three years.

ITI enrolment has also shown a positive trend, increasing from 12.51 lakh in FY 2022–23 to 14.70 lakh in FY 2025–26. This indicates growing interest in vocational education and skill-based career pathways among India’s working-age population.

ITI network expands significantly since 2014

India’s ITI network has expanded considerably over the past decade. The number of ITIs increased from 9,977 in 2014 to 14,688 in 2025, marking a growth of 47.22%.

Enrolment in ITIs also increased from 9.5 lakh in 2014 to 14.7 lakh in 2025, reflecting a rise of 54.74%. The expansion of National Skill Training Institutes from 25 in 2014 to 33 in 2025, along with the increase in Institutes of Training of Trainers from 11 to 120 during the same period, shows a broader effort to strengthen both trainee and trainer capacity.

PM–SETU to modernise 1,000 Government ITIs

To further strengthen the skill training ecosystem, the Government launched PM–SETU, or Pradhan Mantri Skilling and Employability Transformation through Upgraded ITIs, in October 2025.

The scheme has been launched as a Centrally Sponsored Scheme with an estimated cost of ₹60,000 crore. PM–SETU aims to upgrade 1,000 Government ITIs through a hub-and-spoke model, including 200 hub ITIs and 800 spoke ITIs.

Key features of the scheme include modern equipment, state-of-the-art infrastructure, industry partnerships, redesigned courses based on labour market demand and the creation of Special Purpose Vehicles with Anchor Industry Partners.

The scheme also includes capacity augmentation of five National Skill Training Institutes located in Bhubaneswar, Chennai, Hyderabad, Kanpur and Ludhiana. These institutes are expected to be developed as National Centres of Excellence for Skilling with global partnerships.

States such as Haryana, Karnataka and Tamil Nadu are among those working on ITI upgradation aligned with their regional strengths and industry needs.

Policy focus shifts to demand-driven and outcome-based skilling

The current direction of India’s skill development policy reflects a shift from supply-driven training to demand-driven and outcome-based skilling. The emphasis is now on measurable results, industry relevance, inclusive access and improved employability.

Sectors such as healthcare, care economy, animation, visual effects, gaming, comics, tourism, manufacturing, electronics and IT-ITeS are expected to benefit from this framework. By aligning training programmes with emerging labour market requirements, India is seeking to convert its demographic advantage into a productive and globally competitive workforce.

Way forward

India’s skilling challenge remains large due to the involvement of multiple stakeholders, including central and state government departments, private training providers, educational institutions, employers, industry associations, assessment bodies, certification agencies and trainees.

For the Skill India mission to achieve long-term impact, stronger coordination among all stakeholders will be essential. Industry participation, quality assurance, trainer capacity, practical exposure and placement linkages will remain critical factors in ensuring that training leads to meaningful employment outcomes.

As India moves towards Viksit Bharat 2047, a future-ready skilling ecosystem will be central to improving productivity, supporting formalisation and enabling broad-based economic growth.