The Union Budget 2026-27 has brought great news for students and job seekers in India. In a major move to solve the unemployment problem, the government has announced a huge 62% increase in the budget for the Skill India Mission.
Finance Minister Nirmala Sitharaman, while presenting the budget on February 1, 2026, allocated ₹9,885.80 crore to the Ministry of Skill Development and Entrepreneurship (MSDE). This is a sharp jump from last year’s ₹6,100 crore. The biggest highlight is the launch of a new initiative called PM SETU, which aims to modernize Industrial Training Institutes (ITIs) across the country.
Here is a simple breakdown of what this means for the youth of India and how it will help you get a job.
What is the New ‘PM SETU’ Scheme?
The most important announcement for students is the Pradhan Mantri Skilling and Employability Transformation through Upgraded ITIs (PM SETU). The government has set aside over ₹6,140 crore just for this scheme.
Why is it important? Many ITIs in India still use old machines and teach outdated syllabus. PM SETU will change this by:
- Modernizing ITIs: Upgrading classrooms and workshops with the latest technology.
- Industry Connection: Linking ITIs directly with big companies so students learn what the market actually needs.
- New Courses: Introducing training in electric vehicles (EVs), drones, and robotics instead of just traditional trades.
If you are planning to join an ITI or a vocational course, this scheme ensures you will learn skills that are actually in demand in 2026.
Read more: Union Budget 2026 Live
Key Highlights of Skill India Budget 2026-27
Apart from PM SETU, the government is focusing on specific sectors where jobs are growing fast.
1. Big Push for Healthcare Jobs
The government plans to train 1.5 lakh caregivers (people who look after patients and the elderly).
- The training will include skills like wellness, yoga, and operating medical devices.
- This is great for students from non-science backgrounds who want to enter the medical field.
- New Institutions: Existing institutes for Allied Health Professionals will be upgraded to create a workforce of 1 lakh new professionals (like technicians and therapists) over the next 5 years.
2. Jobs in Tourism
If you like travel and history, there is a new pilot scheme for you.
- The government will upskill 10,000 tourist guides across 20 famous tourist sites.
- This training will be done in partnership with top management institutes like the IIMs.
- It will be a 12-week course to teach guides how to communicate better and manage tourists professionally.
3. Focus on AI and Future Tech
To keep up with the world, a Centre of Excellence in AI for Education will be set up with a fund of ₹100 crore. This ensures that Indian students are not left behind in the Artificial Intelligence revolution.
The Role of Skill India Digital Hub (SIDH)
The budget also emphasized the importance of the Skill India Digital Hub (SIDH). This is the government’s “Amazon for Skills”—an online platform where you can find courses, apprenticeships, and jobs.
- One App for Everything: You can register, find a training center near you, and even get your digital certificate on this app.
- AI Recommendations: The app uses AI to suggest courses based on your interests and location.
- Job Matching: It directly connects trained candidates with employers who are hiring.
Impact: How Will This Help You?
This budget is being called a “Yuva Shakti” (Youth Power) budget. Here is the real impact on the ground:
- More Seats: With more funding, training centers will increase their capacity.
- Better Salaries: Training in modern skills (like AI or EV repair) usually leads to higher-paying jobs than traditional unskilled work.
- Global Opportunities: The government is setting up international skill centers to help Indians get work visas for countries like Japan, UAE, and Germany.
What Should You Do Next?
If you are looking for a job or want to learn a new skill:
- Visit the Portal: Go to the official Skill India Digital Hub website or download the app.
- Check for New Courses: Look for the new batches starting under PM SETU or the healthcare schemes.
- Register: Create your profile to get notified when these new government-funded batches begin.
Frequently Asked Questions (FAQs)
Q1: What is the PM SETU scheme announced in Budget 2026?
PM SETU is a new government scheme with a ₹6,140 crore budget. It aims to modernize Industrial Training Institutes (ITIs) and upgrade them with the latest technology to help students get better jobs.
Q2: Is the training under Skill India free?
Yes, most training programs under the Pradhan Mantri Kaushal Vikas Yojana (PMKVY) and PM SETU are free for students. The government pays the training fees.
Q3: Can I get a job after doing a Skill India course?
Yes. The courses are designed to make you “job-ready.” The Skill India Digital Hub also connects you with employers. However, getting a job depends on how well you learn and perform in the interview.
Q4: Which sectors have the most focus in 2026?
The main focus areas this year are Healthcare (caregivers), Tourism (guides), IT/AI, and Manufacturing (through upgraded ITIs).
Q5: How can I apply for these courses?
You can apply online through the Skill India Digital Hub website or visit your nearest Pradhan Mantri Kaushal Kendra (PMKK) or ITI.