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October 09, 2025 India Unveils Key Initiatives in Skilling, Manufacturing, and Infrastructure Development

The Indian government has launched several significant schemes and policies over the past 24-48 hours, focusing on youth skilling, boosting domestic manufacturing, developing infrastructure, and supporting small businesses. Key announcements include the launch of the ₹60,000 crore PM-SETU scheme for ITI upgradation, approval of a ₹7,300 crore scheme for rare earth magnet production, and the inauguration of major infrastructure projects in Mumbai. Additionally, the Delhi government has introduced collateral-free loans for small entrepreneurs, and the deadline for the Unified Pension Scheme choice has been extended.

In a series of strategic moves aimed at fostering economic growth and social development, the Indian government has rolled out and advanced several crucial schemes and policies. These initiatives span skill development, industrial self-reliance, urban infrastructure, and support for micro and small enterprises.

PM-SETU Scheme Launched to Transform Skill Ecosystem

Prime Minister Narendra Modi officially launched the PM-SETU (Pradhan Mantri Skilling and Employability Transformation through Upgraded ITIs) scheme, a centrally sponsored initiative with an investment of ₹60,000 crore. This ambitious program aims to upgrade 1,000 Government Industrial Training Institutes (ITIs) nationwide through a hub-and-spoke model, enhancing their infrastructure and aligning vocational training with current market demands. The scheme envisions a "Government-owned, Industry-managed" model, with a focus on making India's workforce globally competitive. PM Modi highlighted the immediate impact of PM-SETU, noting that the Maharashtra government has already introduced new programs in hundreds of ITIs and technical schools, training students in emerging technologies like drones, robotics, electric vehicles, solar energy, and green hydrogen.

₹7,300 Crore Scheme to Boost Domestic Rare Earth Magnet Production

A significant step towards reducing India's reliance on foreign supply chains was taken with the approval of a ₹7,300 crore government scheme to incentivize domestic production of rare earth magnets. This initiative, approved by a key government panel, targets a production capacity of 6,000 tonnes by 2030, crucial for industries such as electric vehicles, wind turbines, and consumer electronics. The scheme includes both capital and operational expenditure support for firms setting up rare earth magnet processing units, directly addressing vulnerabilities highlighted by recent export restrictions from China.

PM MITRA Park in Uttar Pradesh to Attract Substantial Investment and Jobs

The Uttar Pradesh government announced that the proposed PM Mega Integrated Textile Region and Apparel (PM MITRA) Park in Lucknow and Hardoi districts is projected to attract investments worth ₹10,000 crore and create over 1 lakh jobs. This park is part of the larger central government scheme to establish seven such textile parks across India, with an overall outlay of ₹4,445 crore and an aim to attract ₹70,000 crore in investment and create nearly 20 lakh direct and indirect jobs. The Uttar Pradesh park will feature eco-friendly construction and aims to balance industrial progress with ecological preservation.

Delhi Government Offers Collateral-Free Loans for Small Entrepreneurs

In a move to empower small businesses, the Delhi government has partnered with the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) to provide collateral-free loans to small entrepreneurs. Delhi Chief Minister Rekha Gupta stated that this partnership would facilitate access to loans without requiring collateral, with guarantee coverage of up to 95% shared jointly by the Delhi Government and CGTMSE. The scheme offers varied coverage for different categories, including women entrepreneurs, MSMEs promoted by Agniveers, and micro-enterprises.

Major Infrastructure Projects Inaugurated in Mumbai

Prime Minister Narendra Modi visited Maharashtra to inaugurate several key infrastructure projects. He officially opened Phase 1 of the Navi Mumbai International Airport, built at an estimated cost of ₹19,650 crore, which is set to ease congestion and boost the region's aviation capabilities. The Prime Minister also launched "Mumbai One," India's first Integrated Common Mobility App, designed to streamline public transport across 11 operators, including metro, monorail, suburban railways, and bus services. These projects are expected to generate employment and accelerate India's development.

Unified Pension Scheme Choice Deadline Extended

The government has extended the deadline for eligible existing employees, past retirees, and legally wedded spouses of deceased past retirees to exercise their choice for the Unified Pension Scheme (UPS). The new cut-off date is November 30th, providing more time for stakeholders to consider the various positive changes announced under UPS, including switch options, benefits on resignation, compulsory retirement, and tax exemptions.

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