Skilling Policy India is undergoing a significant transformation with the formation of a National Steering Committee (NSC) in July 2025. This major policy shift focuses on modernising Industrial Training Institutes (ITIs), establishing National Centres of Excellence (CoEs), and strengthening coordination between industry and government bodies. The reforms aim to address the evolving demands of India’s manufacturing and industrial sectors by creating a skilled, future-ready workforce.
Skilling Policy India: Driving Workforce Transformation Through Collaboration
India’s economic future depends heavily on its ability to develop a workforce equipped with skills relevant to 21st-century industry. Recognising this, the Government of India has launched a comprehensive strategy to revamp skill development infrastructure, anchored by the Skilling Policy India framework. Central to this initiative is the creation of the NSC, tasked with guiding the overall transformation process and ensuring alignment between national, state, and industry efforts.
Formation of the National Steering Committee (NSC)
The newly constituted NSC is chaired by Rajit Punhani, Secretary of the Ministry of Skill Development and Entrepreneurship. It includes high-level representatives from ministries of education, commerce, heavy industries, and labour. Industry leaders from major firms like Bajaj Auto and Hero MotoCorp also serve as members, ensuring that private-sector insights shape policy direction.
The NSC is responsible for:
- Issuing strategic guidelines
- Approving state-level proposals for ITI upgradation
- Allocating funds
- Overseeing implementation of the skilling schemes
This body will play a crucial role in streamlining efforts between central and state governments, as well as regional industry clusters.
Upgradation of Industrial Training Institutes (ITIs)
A cornerstone of the Skilling Policy India initiative is the upgradation of 1,000 government-run ITIs across the country. With a massive ₹60,000 crore budget, this initiative will be rolled out over five years. The funding structure includes:
- ₹30,000 crore from the Central Government
- ₹20,000 crore from State Governments
- ₹10,000 crore from industry contributions via CSR initiatives
The goal is to transition outdated ITIs into modern training hubs that are industry-aligned. Using a hub-and-spoke model, these upgraded institutes will:
- Introduce trades aligned with high-growth sectors like robotics, electric vehicles, and AI
- Reform outdated curricula
- Improve on-the-job training opportunities
- Increase employability of students through hands-on industry exposure
States have been asked to identify ITIs for upgradation and submit competitive bids to the NSC for funding and approval.
Establishment of National Centres of Excellence (CoEs)
As part of the initiative, five National Centres of Excellence will be established within existing National Skill Training Institutes (NSTIs) located in:
- Bhubaneswar
- Chennai
- Hyderabad
- Kanpur
- Ludhiana
These CoEs will focus on high-end skill training in sectors such as precision engineering, advanced manufacturing, and industrial automation. They will also serve as knowledge and training hubs for instructors, thereby improving the quality of education delivered at the grassroots level.
The NSTIs, which were first set up in 1963, currently number 33 across India. Traditionally, they have played a key role in training skill instructors. The CoEs will now elevate these institutes to global standards by offering international certifications and forming partnerships with global technology providers.
Role of Industry in Curriculum Design and Certification
The Skilling Policy India marks a departure from traditional models by emphasizing active industry participation, not just in funding but in decision-making. Industry leaders will:
- Help shape training content and curricula
- Participate in certifying skill levels
- Provide real-time feedback on job market demands
This model ensures that skills imparted through ITIs and CoEs are immediately applicable and relevant to industry needs, increasing job readiness and reducing the gap between education and employment.
Coordinated Oversight for Effective Execution
The NSC will have significant autonomy to reallocate funds, adjust programme components, and respond to feedback. It will:
- Vet state government proposals
- Review implementation progress
- Ensure integration with cluster-level industry needs
This tight coordination is expected to streamline the entire skilling ecosystem and foster innovation at the grassroots level.
Conclusion: Skilling Policy India as a Game Changer
The Skilling Policy India initiative, with its strong central oversight, robust industry participation, and investment in infrastructure, represents a paradigm shift in workforce development. By modernising ITIs, creating specialised CoEs, and involving industry at every stage, India is positioning itself to meet global industrial demands and become a hub for skilled talent.
As the world moves toward advanced technologies and digitisation, India’s new skilling strategy promises to create a workforce that is not only ready for today’s jobs but prepared for the future.
