The Asian Development Bank has approved an $846 million loan to support the development of a future-ready workforce in India, particularly for its manufacturing and emerging technology sectors. The initiative will strengthen the government’s national skilling program by transforming Industrial Training Institutes across the country and improving the quality of technical education and training available to young people.
The program will modernize 650 Industrial Training Institutes across 12 states using a hub-and-spoke model and upgrade five National Skill Training Institutes into advanced centers for trainer development. These improvements aim to enhance governance, increase private sector engagement, and ensure that training programs are aligned with industry needs—including the growing demand for green skills. The reforms are expected to benefit at least 1.3 million youth by improving their employability and future job prospects.
India’s Industrial Training Institutes system faces challenges in meeting the skill requirements of the rapidly evolving manufacturing sector. Many institutes lack modern infrastructure, industry links, and updated curricula, which contributes to weak employment outcomes for graduates. The new program addresses these issues by introducing governance reforms, strengthening public–private partnerships, and providing ITIs with greater autonomy to offer demand-driven training.
The initiative will expand opportunities in high-growth sectors such as renewable energy, electric mobility, and advanced manufacturing. It includes investments in energy-efficient infrastructure, digital learning systems, disaster and health preparedness, and training for green jobs. Gender inclusion is also a key focus, with plans to improve facilities, enhance safety, and support leadership pathways for women. The integration of climate-responsive content into training curricula aims to prepare India’s youth for a greener and more resilient economy.
Using a results-based lending approach, ADB will link loan disbursements to measurable outcomes, including higher graduate employment rates and stronger institutional performance. The program will be implemented in collaboration with the World Bank, which is co-financing the effort. ADB continues to support sustainable and inclusive growth across Asia and the Pacific through strategic partnerships, innovative financing, and long-term development investments.
