World Bank Approves USD 830 Million Loan for PM-SETU to Upgrade India’s ITIs

Current Context: On February 2, 2026, the World Bank approved a USD 830 million loan for India’s Pradhan Mantri Skilling and Employability Transformation through Upgraded ITIs (PM-SETU).

• The loan has a 19.5-year maturity period with a 4-year grace period.
• The program will modernize ITIs and NSTIs, upgrading infrastructure and curriculum.
• It aims to train over 1 million youth annually and mobilize USD 680 million in private investment.
• Focus areas include AI, robotics, green technologies, and other emerging sectors.
• Inclusivity target: 25% of ITI students to be women within five years.
• Significance: Tackles youth unemployment and supports India’s vision of becoming Viksit Bharat (Developed India).

Question:

Q.1 The World Bank approved a USD 830 million loan for which the Government of India programme on February 2, 2026?
a) Pradhan Mantri Kaushal Vikas Yojana (PMKVY)
b) Skill India Digital Programme
c) Pradhan Mantri Skilling and Employability Transformation through Upgraded ITIs (PM-SETU)
d) National Apprenticeship Promotion Scheme

Answer: c) The USD 830 million World Bank loan was approved specifically for PM-SETU, which focuses on upgrading ITIs and NSTIs to improve skilling and employability outcomes.