ADB approves $846M loan to modernize India's skill development institutes
28 Nov 2025

The Asian Development Bank (ADB) has approved an $846 million loan to India.

The funds will be used to modernize 650 Industrial Training Institutes (ITIs) and five National Skill Training Institutes (NSTIs).

The initiative is part of the "Supporting Pradhan Mantri Skilling and Employability Transformation through Upgraded Industrial Training Institutes Program."

It intends to create a future-ready workforce for India's manufacturing and emerging technology sectors.

ADB loan to enhance skill training and employability
Program details

The ADB loan will be used to modernize 650 ITIs in 12 states under a hub-and-spoke cluster model. It will also upgrade five NSTIs into centers of excellence for advanced trainer development.

The initiative aims to boost private sector participation, strengthen government efforts, and deliver industry-aligned training including green skills.

Ultimately, it hopes to improve employability for at least 1.3 million Indian youth.

ADB loan to strengthen India's manufacturing sector
Skill enhancement

ADB Country Director for India, Mio Oka, emphasized the need for a highly skilled workforce in India's manufacturing sector.

He said, "This program builds on lessons from ADB's past and ongoing support for skill development in India and other countries."

Oka further added that the initiative will modernize ITIs into industry-driven centers of excellence, broaden opportunities for women and disadvantaged groups.