Discover how PM Modi’s Rs 62,000 crore PM-SETU Scheme is transforming 1,000 ITIs for youth employability, with special Bihar focus. Read detailed insights on The Interview Times.
New Delhi, October 4, 2025 – In a landmark move to harness India’s demographic dividend, Prime Minister Narendra Modi today launched the ambitious PM-SETU Scheme, a Rs 62,000 crore initiative designed to revolutionize vocational training and employability for millions of young Indians.
The PM-SETU Scheme, short for Pradhan Mantri Skilling and Employability Transformation through Upgraded ITIs, targets the modernization of 1,000 government Industrial Training Institutes (ITIs) across the country, with a special emphasis on high-potential states like Bihar.
 This youth-centric program aligns seamlessly with the National Education Policy 2020, bridging critical skill gaps in emerging sectors and positioning India as a global skilling powerhouse.
The unveiling took place at the prestigious Kaushal Deekshant Samaroh event held at Vigyan Bhawan, drawing dignitaries, industry leaders, and over 46 all-India ITI toppers who were felicitated for their excellence.
As India grapples with a youth unemployment rate hovering around 23% for ages 15-29 (as per recent NSSO data), the PM-SETU Scheme emerges as a beacon of hope, promising not just jobs but sustainable careers in high-demand industries.
With a strong focus on skilling and innovation, our government is preparing the Yuva Shakti to lead the future. Speaking at the launch of youth-centric initiatives in Delhi. https://t.co/kiAbStpTP4
— Narendra Modi (@narendramodi) October 4, 2025
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What is the PM-SETU Scheme? Core Features and Investment Breakdown
At the heart of this Rs 62,000 crore package is the PM-SETU Scheme, a centrally sponsored program backed by a whopping Rs 60,000 crore allocation.
Structured on a innovative hub-and-spoke model, it will upgrade 200 hub ITIs as advanced training centers, each linked to four spoke ITIs for decentralized outreach.
This ecosystem will be government-owned yet industry-managed, ensuring real-world relevance through partnerships with global bodies like the World Bank and Asian Development Bank.
Key pillars of the PM-SETU Scheme include:
- Advanced Infrastructure Upgrades: State-of-the-art labs, smart classrooms, and digital learning platforms to train over 10 lakh youth annually in cutting-edge trades.
- Industry-Aligned Curriculum: Focus on sectors like IT, automotive, agriculture, logistics, tourism, renewable energy, and healthcare, with curricula co-designed by industry giants such as Tata, Reliance, and Infosys.
- Entrepreneurship and Incubation Hubs: On-campus startup centers to nurture 50,000 young entrepreneurs, complete with seed funding and mentorship programs.
- Placement and Digital Ecosystem: AI-driven job matching portals and apprenticeship linkages, aiming for 80% placement rates within six months of training.
- Inclusive Reach: Special quotas for women, SC/ST/OBC communities, and rural youth, with mobility support for inter-state training.
The remaining Rs 2,000 crore from the package funds complementary initiatives, such as the inauguration of 1,200 vocational skill labs in 400 Navodaya Vidyalayas and 200 Eklavya Model Residential Schools across 34 states and Union Territories. Over 1,200 teachers have been trained to deliver hands-on, industry-relevant education, ensuring a ripple effect from school to workplace.
Prime Minister Modi, addressing the gathering, emphasized, “The PM-SETU Scheme is not just about skilling; it’s about empowering our youth to script India’s story of self-reliance. In the next five years, we envision a skilled workforce that drives Viksit Bharat by 2047.”
Union Home Minister Amit Shah echoed this sentiment, highlighting how the scheme will equip ITIs with “world-class facilities to create millions of jobs and foster innovation.”
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Bihar Takes Center Stage: Tailored Interventions for the Youth Bulge
In a strategic nod to upcoming state elections, Bihar – home to over 50% of its population under 25 – has been earmarked for accelerated implementation under the PM-SETU Scheme.
The first phase prioritizes upgrades at ITIs in Patna and Darbhanga, transforming them into regional skilling hubs capable of training 2 lakh youth in the initial rollout.
Bihar’s bespoke package under the broader initiative includes:
- Revamped Mukhyamantri Nishchay Svyam Sahayata Bhatta Yojana: A Rs 1,000 monthly stipend for two years, coupled with free skill training for nearly 5 lakh graduates annually, to ease the transition from education to employment.
- Enhanced Bihar Student Credit Card Scheme: Interest-free loans up to Rs 4 lakh for higher education and vocational courses, building on the existing Rs 7,880 crore disbursed to over 3.92 lakh students.
- Jan Nayak Karpoori Thakur Skill University: Inaugurated today, this dedicated institution will offer specialized vocational degrees in emerging fields like AI, robotics, and sustainable agriculture.
- PM-USHA Infrastructure Boost: Foundation stones laid for Rs 160 crore upgrades at four key universities—Patna University, Bhupendra Narayan Mandal University, Jai Prakash Vishwavidyalaya, and Nalanda Open University – benefiting over 27,000 students with modern hostels, labs, and digital libraries.
- Direct Empowerment Measures: Appointment letters distributed to over 4,000 new government recruits, alongside Rs 450 crore in scholarships via Direct Benefit Transfer to 25 lakh Class 9-10 students. The launch of the Bihar Yuva Ayog further channels the energy of 18-45-year-olds through policy consultations and leadership programs.
These Bihar-focused elements of the PM-SETU Scheme are projected to generate 5 lakh direct jobs in the state within three years, addressing the region’s historical challenges with migration and underemployment.
Chief Minister Nitish Kumar praised the initiative as a “turning point for Bihar’s youth, aligning with our vision of a skilled and self-sufficient state.”
Broader Impact: Aligning with India’s Skilling Revolution
The PM-SETU Scheme fits into a larger tapestry of India’s skilling ecosystem, complementing programs like Skill India Mission and Apprenticeship Act amendments. By 2030, it aims to skill 4 crore youth, reducing the employability gap from 45% to under 20%, according to projections from the Ministry of Skill Development and Entrepreneurship.
Economically, the scheme is a multiplier: For every Rs 1 invested in skilling, India could see Rs 7-8 in GDP returns through higher productivity and reduced welfare costs. Environmentally, it promotes green skills in solar energy and waste management, supporting India’s net-zero goals.
Challenges remain, including ensuring equitable access in remote areas and measuring long-term outcomes. However, with multi-stakeholder involvement – from corporates funding 30% of upgrades to NGOs handling outreach – the PM-SETU Scheme is poised for success.
Why the PM-SETU Scheme Matters for India’s Future
As India stands at the cusp of becoming the world’s third-largest economy, the PM-SETU Scheme is more than a policy – it’s a promise to its 65 crore youth.
By democratizing access to quality training, it empowers marginalized voices and fuels inclusive growth. For Bihar and beyond, this Rs 62,000 crore bet on human capital could redefine destinies, one skilled graduate at a time.