The fresh outlay for the coming year not only restores funding but significantly expands it, underlining the Centre’s renewed focus on human capital as a growth driver.
Big push for ITIs and youth employability
A large share of the allocation, nearly Rs 9,886 crore, was earmarked for centrally sponsored schemes, with the flagship Pradhan Mantri Skilling and Employability Transformation through Upgraded ITIs (PM SETU) emerging as the biggest beneficiary.
The scheme has been allotted Rs 6,140.50 crore, signalling a strong push to modernise Industrial Training Institutes and align them more closely with industry needs.
Meanwhile, welcoming Sitharaman’s ninth consecutive budget under the Modi government, Skill Development and Entrepreneurship Minister Jayant Chaudhary described it as “Yuva Shakti-driven.”
He added that the budget was firmly anchored in the vision of Viksit Bharat 2047. Chaudhary said the 62% increase in the ministry’s allocation reflects the government’s resolve to place skills at the heart of India’s economic transformation.
The union minister noted that the Budget strengthens the full education-to-employment pipeline, spanning National Skills Qualifications Framework-aligned programmes, caregiver training, upgraded textile skilling, sports-linked ecosystems and industry-integrated pathways.
With sustained public capital expenditure expected to crowd in private investment, the expanded skilling push is also likely to open up new opportunities across Tier-II and Tier-III cities.