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TRANSFORMINGINDUSTRIAL TRAININGINSTITUTES SKILL DEVELOPMENT AND EMPLOYMENT VERTICAL NITI Aayog. (2023). Transforming Industrial Training Institutes.January,2023. Copyright@ NITI Aayog, 2023 NITI Aayog Government of India. SansadMarg, New Delhi–110001, India Publishing Agency:NITI Aayog Year of Publication:2023 Book, English Report and Cover Design by YAAP Disclaimer: Everycare has been taken to provide accurate information along with referencesthereof. However, NITI Aayog shall not be liable for any loss or damage, arising out ofor in connection with any use of or reliance on the information in this document. Incase of any errors, the same shall be attributed to the authors and not the Institution.Further, this report has been prepared for encouraging further work toward pathwaysfor transforming the ITI ecosystem. The report should not be taken as the policy stanceof the Government of India. ACKNOWLEDGEMENT Authors are immensely thankful to Sh. Kundan Kumar, Adviser NITI Aayog, for providing anopportunity to work on this subject and for unflinching support and guidance throughout thestudy. His insightful inputs have been instrumental in shaping the study. Authors also thankMs. Anjali Bansal, Associate NITI Aayog for her valuable inputs. The support extended by Ms.Shreya, Ms. Daphnee, Ms. Parul and Ms. Shruti is also acknowledged for their work on selectcomponents of the report. The authors thank all the ITI principals, instructors and trainees,and officials who participated in the interviews and interaction sessions. INDIA AND ITSWATER WAYSMESSAGE FROM ADVISER,SKILL DEVELOPMENT ANDEMPLOYMENT VERTICAL India has the demographic advantage of the youngest workforce in the world; it can be theHuman Resource Capital of the world by appropriately skilling its youth and converting thisadvantage into a dividend. To reap the demographic dividend, the role of training institutionsis very critical. The training institutions have to be adequately equipped to suitably skill, reskill& upskill the workforce for the world of work. Withthe inception of the Ministry of Skill Development and Entrepreneurship(MSDE) in2015,several strides have been taken by the Government of India to transform the skilldevelopment landscape. Robust policy and programmatic interventions such as the NationalSkill Development Policy, National Skill Development Mission, Common Cost Norms, NationalSkill Qualification Framework, Upgradation of Industrial Training Institutes (ITIs), and WorldBank assisted programmes SANKALP and STRIVE for strengthening short-term and long-termtraining ecosystem respectively are some of the flagship initiatives of the Ministry. ITIs have long been the backbone of the skill ecosystem, set up to ensure a steady flow ofskilled personnel to the industry. With the advent of Industry 4.0, we are living through afundamental transformation in the way we work. The curriculum and infrastructure of ITIs haveto keep pace with the changing needs of the industry. Though there have been several effortsby the Centre and State Governments to revamp ITIs, these initiatives need to be enhancedthrough targeted interventions. Keeping this in view, an attempt has been made through thisreport to understand the ground reality of the ITI ecosystem and recommend solutions forits transformation. The report aims to support the stakeholders in their stride to improve theITI ecosystem so that it continues to be an important pillar in skilling the future workforce. The study highlights transformative ideas for revamping the ITI ecosystem in the country. Forthe formulation of the report, several rounds of stakeholder interviews, expert consultations,and field visits were held and this report is the culmination of the efforts of the research teamcomprising Mr. Rajesh Gupta, Dr. Gagan Preet Kaur, Ms. Oshin Dharap, Mr. Kailash Nath Vermaand Mr. Dheeraj Rathore from NITI Aayog. As a part of the research process, a mix of high-graded and low-graded ITIs were visited to assess the disparity in the infrastructure, teachingquality, placement, tie-ups for industry interactions, apprenticeships, and so on. Perspectivesof ITI stakeholders were assessed and consultations were held with domain experts to arriveat the recommendations for reforming the ITI ecosystem. A deep dive analysis of the budgetsof various ITIs was undertaken, and data available on MIS was scrutinised. I hope this report will serve as a crucial resource for Ministries, State Governments, ITIs, andother concerned stakeholders to work in tandem to achieve quality conscious, performance-driven, digitally enabled, and technologically empowered ITI ecosystem. Kundan Kumar EXECUTIVE SUMMARY ITIs are the backbone of vocational training in India. Every year lakhs of students enter the nearly15,000 odd ITIs and many of them join the trained workforce of the country. Revamping ITIshas been attempted through various interventions so far, such as creating Centers of Excellence,STRIVE f