The World Bank has approved an $830 million loan to support the revamp of India’s network of skills training institutes, aiming to strengthen workforce readiness and improve employability among youth. Jobs remain central to India’s growth trajectory, competitiveness, and its ambition of becoming Viksit Bharat. However, India’s youth account for nearly 72 per cent of the unemployed, and a persistent skills mismatch between training and industry requirements continues to limit productivity, firm growth, and earnings.
While Industrial Training Institutes (ITIs) play a crucial role in skilling young people, many face serious challenges, including inadequate infrastructure, a shortage of qualified trainers, and limited resources to meet industry standards. As a result, graduate job placement rates from ITIs remain below 50 per cent, the World Bank said in a release.
The Supporting Pradhan Mantri Skilling and Employability Transformation Through Upgraded ITIs (PM-SETU) Programme seeks to modernise the ITI network, better align training with labour market needs, and produce over one million better-skilled workers annually. The programme has been developed jointly with the Asian Development Bank and will also attract private sector participation by mobilising at least $680 million in private capital.
The $830 million loan carries a final maturity of 19.5 years, including a four-year grace period, and is expected to play a key role in strengthening India’s human capital and workforce competitiveness.
