ADB Approves $846 Mn for ITI, NSTI Modernisation Programme
“India’s manufacturing sector requires a highly skilled workforce to remain competitive globally and foster inclusive growth”: Reports
CHENNAI: The Asian Development Bank (ADB) has approved an $846 million loan to modernise Industrial Training Institutes and National Skill Training Institutes (NSTIs).
ADB said this will help build a future-ready workforce for India’s manufacturing and emerging technology sectors.
The ‘Supporting Pradhan Mantri Skilling and Employability Transformation through Upgraded Industrial Training Institutes (ITIs) Program’ will modernise 650 ITIs across 12 states under a hub-and-spoke cluster model and upgrade five National Skill Training Institutes (NSTIs) into centres 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.
Many of India’s 3,500 ITIs 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.
As per the results-based lending modality used, fund disbursement is linked to measurable results, such as improved graduate employment rates and strengthened institutional performance. During implementation, ADB will collaborate with the World Bank, which is co-financing the programme.