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GOVERNMENT OF INDIA
MINISTRY OF SKILL DEVELOPMENT AND ENTREPRENEURSHIP
LOK SABHA
UNSTARRED QUESTION No. 2623
ANSWERED ON 09.03.2026
SPECIAL SUPPORT FOR YOUNG, WOMEN AND RURAL ENTREPRENEURS
†2623 SHRI DARSHAN SINGH CHOUDHARY:
Will the Minister of SKILL DEVELOPMENT AND ENTREPRENEURSHIP be pleased to
state:
(a) the steps taken/being taken by the Government under the PM-Setu scheme to strengthen
the startup and entrepreneurship ecosystem in the country, especially to encourage early-stage
startups and first-time entrepreneurs;
(b) the main objectives, provisions and eligibility criteria of the PM-Setu scheme;
(c) the details of the number of startups/entrepreneurs that have been provided financial and
technical assistance under the scheme so far, State/UT-wise;
(d) the additional provisions made to provide special assistance to first-time young women
rural entrepreneurs; and
(e) the monitoring and evaluation mechanism adopted by the Government to ensure effective
implementation of the scheme and long-term success of the startups?
ANSWER
THE MINISTER OF STATE (INDEPENDENT CHARGE) IN THE MINISTRY OF SKILL
DEVELOPMENT AND ENTREPRENEURSHIP
(SHRI JAYANT CHAUDHARY)
(a) to (e) The Cabinet has approved the Pradhan Mantri Skilling and Employability
Transformation through Upgraded ITIs (PM SETU) scheme to enhance the overall quality and
relevance of vocational training in the country.
The key objectives of the scheme are:
i. To improve the quality of training delivery in Industrial Training Institutes (ITIs) and
NSTIs;
ii. To modernize infrastructure and equipment as per industry standards;
iii. To introduce industry-aligned long-term and short-term courses, especially in new and
emerging sectors;iv. To strengthen industry linkage for demand-driven skilling and better employment
outcomes; and
v. To enhance the capacity of National Skill Training Institutes (NSTIs) for training of
trainers.
The scheme comprises of two components:
i. Component I – Upgradation of 1,000 Government ITIs (200 Hub ITIs and 800 Spoke
ITIs) in a Hub and Spoke model wherein upgradation includes smart classrooms, modern labs,
digital content, and new courses aligned to industry needs.
ii. Component II – Capacity Augmentation of five NSTIs located in Bhubaneswar, Chennai,
Hyderabad, Kanpur, and Ludhiana, including setting-up sector-specific National Centres of
Excellence for skilling, with focus on advanced training of trainers with global partnership.
PM-SETU focuses on improving employability outcomes through industry-led governance, and
indirectly supports self-employment and entrepreneurship by enabling learners to acquire
industry-relevant skills, gain exposure to real work environments, and access career guidance,
placement support, and self-employment support through strengthened institutional systems
and industry linkages. However, a mandatory 120 hours of Employability Skills training (for one-
year courses) has been included in the syllabus for all ITI trainees, which covers modules on
entrepreneurship, financial literacy and digital literacy, thereby supporting trainees, including
rural women, in exploring self-employment opportunities.
The industry-led Special Purpose Vehicles (SPVs) under the Scheme would lead the
upgradation and be empowered to propose necessary interventions relating to curriculum
redesign, training delivery models, infrastructure upgradation, industry exposure, and
placement or self-employment facilitation, in alignment with local industry needs and the
Scheme guidelines.
Implementation of the scheme will be overseen by a National Steering Committee (NSC)
comprising representatives of the Central Government, State Governments and industry
partners, which will provide overall policy guidance. In addition, State Steering Committees
(SSCs) chaired by the Chief Secretary of the respective State/UT will monitor progress at the
State level. The scheme also provides for periodic monitoring, performance reviews, and third-
party impact assessment to ensure effective implementation and achievement of intended
outcomes.
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