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 initiative is significant for Uttar Pradesh because the state is simultaneously expanding its manufacturing, electronics, defence, engineering, infrastructure, services and MSME sectors. 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.
The basic PM-SETU approach is a Hub-and-Spoke model. 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. 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 adapting this model to its own industrial geography. According to the Union Ministry of Skill Development and Entrepreneurship, 32 ITIs have so far been identified across the eight UP clusters. 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.
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.
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.
PM-SETU also introduces a different institutional framework for industry participation. According to the Union government, 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.
The proposed Special Purpose Vehicle gives the Anchor Industry Partner 51 percent ownership, while the Centre and State each hold 24.5 percent. 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.
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.
The immediate priority for Uttar Pradesh is to bring suitable Anchor Industry Partners into all eight clusters and develop detailed Strategic Investment Plans.
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. It will also require strong coordination between the Skill Development Department, ITIs, district administrations, industries, MSMEs and sector skill organisations.
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.
