The Asian Development Bank (ADB) has approved an $846 million loan to help India build a skilled workforce for manufacturing and emerging tech sectors, the Bank announced. The funding will modernize training institutes and expand opportunities for at least 1.3 million young people, including women and disadvantaged groups.
The Supporting Pradhan Mantri Skilling and Employability Transformation through Upgraded Industrial Training Institutes (ITIs) Program will upgrade 650 ITIs across 12 states using a hub-and-spoke model, and turn five National Skill Training Institutes (NSTIs) into advanced centers for training instructors. The program aims to improve governance, bring in more private sector involvement, and deliver training that matches what industries actually need—including skills for green jobs.
“India’s manufacturing sector needs a highly skilled workforce to stay competitive globally and drive inclusive growth,” said Mio Oka, ADB’s Country Director for India. “This program builds on lessons from past and ongoing work in India and other countries. It will transform ITIs into industry-driven centers, broaden opportunities for women and disadvantaged groups, and strengthen India’s position as a hub for advanced skills.”
Many of India’s 3,500 ITIs struggle to offer training that leads to jobs. The system hasn’t kept up with the fast-changing demands of the country’s growing manufacturing sector. The new program will introduce reforms that give ITIs more independence, often through public-private partnerships, and upgrade infrastructure and digital systems to deliver courses in high-growth areas like renewable energy, electric vehicles, and advanced manufacturing.
It will also support energy-efficient buildings, disaster and health preparedness, and training for green jobs. To boost gender inclusion, the program will improve facilities and create more leadership roles for women, while integrating climate and sustainability themes into the curriculum to prepare students for the jobs of the future.
ADB is using a results-based lending model, which means funding is released based on measurable outcomes like better employment rates and stronger institutional performance. The World Bank is co-financing the program.
