In Short : The Asian Development Bank (ADB) has approved an $846 million loan to strengthen India’s skill development ecosystem. The funding aims to enhance vocational training quality, expand access to modern skill programs, and improve employability for youth and workers. It will support upgrading training institutions, integrating industry-relevant curriculum, and increasing opportunities in key sectors. The initiative seeks to align India’s workforce with evolving market needs and boost long-term economic growth.
In Detail : MANILA, PHILIPPINES — 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 Supporting Pradhan Mantri Skilling and Employability Transformation through Upgraded Industrial Training Institutes (ITIs) Program will support the government’s nationwide program 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.”
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.
The results-based lending modality used for the program funds disbursements 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 program.
ADB is a leading multilateral development bank supporting sustainable, inclusive, and resilient growth across Asia and the Pacific. Working with its members and partners to solve complex challenges together, ADB harnesses innovative financial tools and strategic partnerships to transform lives, build quality infrastructure, and safeguard our planet. Founded in 1966, ADB is owned by 69 members—50 from the region.
