
IIT Palakkad
New Delhi: The Union Cabinet, chaired by Prime Minister Narendra Modi, today approved the expansion of five Indian Institutes of Technology (IITs) and a National Scheme for Industrial Training Institute (ITI) Upgradation with five National Centres of Excellence (NCOE) for Skilling, aiming to increase student capacity and align skills with industry needs. These initiatives target education and vocational training to support economic growth, social mobility, and industry alignment, though funding coordination, infrastructure scaling, and industry integration may influence outcomes.
The IITs’ expansion, termed Phase-B construction, targets institutes in Andhra Pradesh (Tirupati), Kerala (Palakkad), Chhattisgarh (Bhilai), Jammu & Kashmir (Jammu), and Karnataka (Dharwad). These IITs, established between 2015–2016 for Palakkad and Tirupati and 2016–2017 for Bhilai, Jammu, and Dharwad, transitioned from temporary to permanent campuses. The project, costing Rs. 11,828.79 crore over the financial years 2025–2029, includes the creation of 130 new faculty posts at the Professor level (Level 14 and above) and the establishment of five research parks to facilitate collaboration between industry and academia. The expansion will increase student capacity by 6,576, raising the total from 7,111 to 13,687 students over four years. The breakdown includes 1,364 additional students in the first year, 1,738 in the second year, 1,767 in the third year, and 1,707 in the fourth year, across Undergraduate (UG), Postgraduate (PG), and Doctor of Philosophy (PhD) programs. Analysis indicates the increased capacity may address the demand for technical education, but the recruitment of qualified faculty and the operationalisation of research parks require sustained industry and institutional collaboration to meet academic and innovation goals.
The expansion enables over 6,500 additional students to access IIT education, contributing to the development of a skilled workforce, fostering innovation, and supporting economic growth. It enhances social mobility by providing opportunities for students from diverse backgrounds, reduces educational inequality by increasing access to higher education, and strengthens India’s global position through the production of skilled professionals competitive in international markets. The initiative supports nation-building by creating human capital capable of driving technological and economic advancements. Direct employment will be generated through the hiring of faculty, administrative staff, researchers, and support personnel to manage the increased student numbers and expanded facilities. Indirect employment will arise from increased demand for housing, transportation, and services in the local economies surrounding the IIT campuses. Graduates and postgraduates from these IITs will further contribute to innovation and startup ecosystems, creating employment opportunities across diverse sectors such as technology, engineering, and entrepreneurship. Admissions to IITs operate on a pan-India basis, ensuring benefits extend to all States and Union Territories, not limited to the host regions of Andhra Pradesh, Kerala, Chhattisgarh, Jammu & Kashmir, and Karnataka. The Budget announcement for 2025–26 highlighted that the total number of students across 23 IITs has doubled from 65,000 to 1.35 lakh over the past decade, and this expansion will facilitate education for an additional 6,500 students. Analysis suggests the expansion may broaden access to technical education, but ensuring equitable representation across regions and socioeconomic groups depends on effective outreach, transparent admission processes, and support systems for underrepresented communities.
The National Scheme for ITI Upgradation, implemented as a Centrally Sponsored Scheme, targets the upgradation of 1,000 Government ITIs and the capacity augmentation of five National Skill Training Institutes (NSTIs) located in Bhubaneswar, Chennai, Hyderabad, Kanpur, and Ludhiana, which will also host five NCOEs for Skilling. The scheme, with a total outlay of Rs. 60,000 crore, is funded by Rs. 30,000 crore from the Central Government, Rs.20,000 crore from State Governments, and Rs. 10,000 crore from industry contributions. Fifty per cent of the Central share will be co-financed equally by the Asian Development Bank and the World Bank, as outlined in the Budget announcements for 2024–25 and 2025–26. The initiative aims to skill 20 lakh youth over a five-year period through revamped, industry-aligned courses delivered in a hub-and-spoke arrangement, addressing human capital needs in high-growth sectors such as electronics, automotive, and renewable energy. Additionally, the scheme includes Training of Trainers (ToT) programs, both pre-service and in-service, for 50,000 trainers at the NSTIs to ensure quality instruction. Analysis indicates the scale of the program may address critical skill shortages in emerging industries, but maintaining alignment between course offerings and rapidly evolving industry demands requires continuous engagement with industry stakeholders and periodic curriculum updates.
The ITI scheme adopts an industry-led Special Purpose Vehicle (SPV) model to ensure outcome-driven implementation, marking a departure from previous schemes that provided suboptimal financial assistance for ITI upgradation. Unlike past efforts, which struggled to meet growing investment requirements for infrastructure upkeep, capacity expansion, and the introduction of capital-intensive, new-age trades, this scheme incorporates need-based investment provisions. These provisions allow flexibility in fund allocation based on the specific infrastructure, capacity, and trade-related requirements of each ITI, ensuring tailored interventions. The scheme establishes a deep industry-connect in the planning and management of ITI upgradation on a sustained basis, positioning ITIs as government-owned, industry-managed institutions. It addresses long-standing challenges in infrastructure, course relevance, employability, and the perception of vocational training, which have historically limited the appeal of ITIs. By aligning training with industry demand, the scheme supports Micro, Small, and Medium Enterprises (MSMEs) and larger industries by providing employment-ready workers, contributing to the Prime Minister’s vision of Viksit Bharat, a developed India by 2047. ITIs, operational under State Governments since the 1950s, have expanded by 47% since 2014, reaching 14,615 institutes with an enrollment of 14.40 lakh students. However, they have faced challenges due to outdated infrastructure and a lack of systemic interventions to enhance course relevance and appeal. Analysis suggests the SPV model and industry collaboration may improve the effectiveness and perception of vocational training, but successful implementation hinges on robust coordination among Central and State Governments, industry partners, and international financiers, as well as the availability of qualified trainers to support the expanded training capacity.
Both initiatives aim to address India’s human capital needs as part of its journey toward becoming a developed nation by 2047. The IIT expansion focuses on enhancing technical education, research, and innovation through increased student capacity and industry-academia linkages via research parks. The ITI upgradation scheme concentrates on vocational training, aligning skills with industry requirements through modernised infrastructure, revamped courses, and industry-managed institutions. Together, these efforts target the skilling of over 20 lakh individuals, combining the 6,576 additional IIT students with the 20 lakh youth to be trained through ITIs, thereby supporting economic growth and social mobility. The IIT expansion directly contributes to producing highly skilled professionals in engineering, technology, and research, while the ITI scheme ensures a pipeline of technically trained workers for industries ranging from manufacturing to renewable energy. Analysis indicates these complementary initiatives may position India as a global hub for manufacturing, innovation, and skilled labour, strengthening its economic competitiveness and reducing dependency on unskilled labour markets. However, several challenges may affect their outcomes. For the IITs’ expansion, securing qualified faculty, integrating industry partners into research parks, and ensuring equitable access across diverse socioeconomic groups require careful planning and execution. For the ITI scheme, coordinating the complex funding structure involving Central, State, industry, and international contributions, scaling infrastructure to support 1,000 ITIs, and training 50,000 trainers pose logistical and operational challenges. Additionally, maintaining the relevance of ITI courses in a rapidly changing industrial landscape and overcoming the historical perception of vocational training as less desirable will require sustained efforts in curriculum development, industry engagement, and public awareness campaigns. Effective implementation across diverse States, coupled with consistent funding and monitoring, will determine the extent to which these initiatives achieve their objectives of workforce development, economic growth, and social inclusion.
– global bihari bureau