PM-SETU Yojana: Global Skills for Indian Youth

PM-SETU Yojana to Align Youth Skills Globally

Why in the News?

Prime Minister Narendra Modi launched the PM-SETU scheme during the Kaushal Deekshant Samaroh in New Delhi. The initiative aims to connect India’s youth with global skill demands, modernize Industrial Training Institutes (ITIs), and boost education, skilling, and entrepreneurship nationwide. This move aligns with the Reserve Bank of India’s efforts to promote financial inclusion and stability through its latest RBI monetary policy decisions, which have kept the repo rate unchanged while focusing on liquidity management and open market operations. The RBI’s approach, maintaining a neutral stance, reflects its commitment to balancing growth and inflation concerns.

PM-SETU Yojana: Global Skills for Indian Youthvv

Key Facts for Kaushal Deekshant Samaroh:

  • Launch Event: Kaushal Deekshant Samaroh, New Delhi, October 4, 2025.
  • Beneficiaries: Over 1,000 ITIs nationwide and thousands of students and youth.
  • Scope: Upgradation of ITIs, modern machines, skill-based programs, and global exposure.
  • Objective: Bridge the skill gap between India’s workforce and international industry requirements.
  • Strategic Relevance: Strengthens human capital, enhances employability, and promotes Atmanirbhar Bharat in the skilling ecosystem.

Strengthening Youth Skills and Employment

  • PM-SETU promotes vocational education and skill-based learning in line with industry needs, potentially improving capacity utilization in various sectors and boosting private consumption.
  • Encourages integration of ITIs with national and global skill standards, which could positively impact services exports.
  • Aims to create a future-ready workforce adaptable to emerging technologies and sectors, contributing to increased fixed capital formation and gross value added.
  • Supports entrepreneurship development among youth, providing access to modern tools and training.
  • Contributes to India’s economic growth by enhancing productivity, innovation, and global competitiveness, which could positively impact the current account deficit and merchandise exports, potentially influencing the GDP growth forecast.

The Reserve Bank’s focus on financial stability and credit growth complements these efforts, as the monetary policy committee considers the impact of skill development on overall economic health. The latest monetary policy today reflects a balanced approach, maintaining the repo rate unchanged while adjusting the cash reserve ratio and utilizing the marginal standing facility (MSF) rate to manage liquidity in the financial system. The RBI also uses fine tuning operations to ensure optimal liquidity conditions.

About PM-SETU Scheme and Key Objectives:

● PM-SETU (Skill, Employment, Training, and Upskilling) aims to align youth skills with current and future industry demands.
● The scheme focuses on upgrading over 1,000 ITIs across India with modern infrastructure and machines.
● Targets preparing the workforce to meet global industry standards and anticipate skills required in the next decade.
● Supports youth in entrepreneurship, vocational training, and employability enhancement.
● It forms part of a larger ₹62,000 crore initiative for education, skilling, and youth-focused programs.

This initiative is expected to boost digital payments and financial inclusion, areas that the RBI has been actively promoting through its regulatory measures and financial sector reforms. The RBI’s efforts extend to strengthening cooperative banks and encouraging priority sector lending to support inclusive growth. Additionally, the central bank is focusing on data protection measures to ensure the security of digital transactions. The success of PM-SETU could lead to increased investment activity, potentially influencing equity markets positively and contributing to the growth of FDI inflows.