Manila: The Asian Development Bank (ADB) has approved an $846 million loan to help build a future-ready workforce for India’s manufacturing and emerging technology sectors.
The bank aims to support the government’s nationwide program PM-SETU through modernizing 650 ITIs across 12 states under a hub-and-spoke cluster model and upgrading five National Skill Training Institutes (NSTIs) into centers of excellence for advanced trainer development. These reforms aim to strengthen governance, boost private sector participation, and deliver industry-aligned training—including green skills—to improve employability for at least 1.3 million youth.
“India’s manufacturing sector requires a highly skilled workforce to remain competitive globally and foster inclusive growth,” said ADB Country Director for India Mio Oka. “This program builds on lessons from ADB’s past and ongoing support for skill development in India and other countries. It will modernize ITIs into industry-driven centers of excellence, broaden opportunities for women and disadvantaged groups, and strengthen India’s position as a hub for advanced skills.”
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Out of 3500 ITIs, many struggle to deliver industry-relevant training, resulting in poor employment outcomes for graduates. The ITI system has not kept pace with the evolving skill demands of the country’s rapidly growing manufacturing sector.
The program will introduce governance reforms through public–private partnerships that will grant ITIs greater autonomy, and upgrade infrastructure and digital systems to deliver demand-driven courses in high-growth sectors, such as renewable energy, electric mobility, and advanced manufacturing. It will support energy-efficient infrastructure, disaster and health preparedness, and green jobs training. It will also promote gender inclusion by improving facilities and expanding leadership opportunities for women, while integrating climate-responsive training and sustainability principles into curricula to prepare youth for green jobs.
Under this program, the results-based lending modality ensures that fund disbursements are tied to specific, measurable achievements—such as higher graduate employment rates and improved institutional performance. Throughout the implementation phase, ADB will work in partnership with the World Bank, which is providing co-financing for the program.
