STRIVE-2017 

Policy Update
Shivali Yadav

1. Background

The STRIVE project, or Skills Strengthening for Industrial Value Enhancement, was initiated by the Government of India via the Ministry of Skill Development and Entrepreneurship with assistance from the World Bank.

The agreement was executed between the Government of India and the World Bank on 19 December 2017. It commenced operations in December 2018. The initiative is an upgraded iteration of the Vocational Training Enhancement Project, which began in 2007. The earlier project had already improved employability through industry-oriented training. Yet, even with this progress, there remained specific areas needing enhancement, including the quality of training in state-operated institutes, instructors’ expertise, courses relevant to the industry, and boosting women’s involvement.

Objective: The initiative seeks to enhance the availability of high-quality, relevant vocational training in ITIs and apprenticeships, with particular emphasis on including women, Scheduled Castes, and Scheduled Tribes across 34 States and Union Territories. The project received funding through a loan of Rs. 2,200 crore (US$318 million) from the World Bank, to be released upon meeting Disbursement Linked Indicators. Initially designed as a five-year programme until November 2023, the project was subsequently extended by 18 months due to disruptions caused by the COVID-19 pandemic. Within this period, it aims to provide training through 500 Industrial Training Institutes, comprising 467 government-run and 33 privately managed ITIs, covering nearly 90 industry clusters. 

2. Functioning

The STRIVE initiative was created with multiple levels of organizations. The National Programme Implementation Unit (NPIU), set up under the Directorate General of Training (DGT), executed the programme nationwide. Additionally, the State Project Implementation Units (SPIUs) executed the programme’s implementation at the state level.

Moreover, the Institutional Management Committees (IMCs), typically led by individuals from the industry related to the job for which the programme offers training, execute the programme within the specific institutions involved in the STRIVE initiative. The programme had a total financial outlay of Rs. 2,200 crore, comprising World Bank assistance of Rs. 1,650 crore (US$318 million) and Government of India funding of Rs. 550 crore. The funding was released based on the achievement of Disbursement Linked Indicators (DLIs), thereby linking financial disbursements with measurable institutional and governance reforms.

To guarantee that the resources designated for the programme were used effectively, a contract known as the Performance-Based Grant Agreement (PBGA) was created between the government and 423 of the 500 Industrial Training Institutes (ITIs) nationwide. Under this arrangement, grants were released to ITIs upon the achievement of agreed performance targets related to institutional governance, quality of training, industry engagement, placement outcomes, and financial management, encouraging institutions to improve their overall performance rather than merely spending allocated funds.

Additionally, the Industry Apprenticeship Initiative (IAI) was created to enhance the training of apprentices in various industries nationwide, and it was executed in 111 industrial clusters, with 90 of these clusters entering grant agreements with the initiative. A Management Information System (MIS) was created to oversee the execution of the program and to facilitate review missions to the country by the World Bank. The MIS also supported monitoring of key performance indicators, financial reporting, and the verification of DLI achievements across participating institutions and states.

Ultimately, a new system known as the Single Nodal Account (SNA) was created during the program’s execution to oversee the allocation of funds to the appropriate states. Nonetheless, as those states transitioned to the Public Financial Management System (PFMS), there were setbacks in the release of those funds. Nonetheless, additional financial support was allocated to those states to assist in the shift from the SNA to the PFMS, facilitating a smoother execution of the program. By Academic Bank of Credits (ABC): 

National Education Policy (NEP) 2020project closure, approximately Rs. 772.67 crore had been disbursed to implementing agencies, of which Rs. 711.68 crore (around 92 percent) had been utilized, reflecting strong financial performance despite implementation delays caused by the pandemic and the transition to the PFMS.

3. Performance

STRIVE was designed around four result areas linked to specific outcomes: enhanced performance of Industrial Training Institutes (ITIs); strengthened capacity of State Governments to support ITIs and apprenticeship training; improved teaching and learning; and expanded apprenticeship training. Fiscal performance was relatively strong for an externally aided project. Out of the total budget of Rs. 2,200 crore, Rs. 772.67 crore was disbursed to executing agencies, of which Rs. 711.68 crore (approximately 92 per cent) had been utilised by project closure. In addition, 22 of the 32 participating States had submitted their audit reports by the time the project closed.

Despite the overall positive financial performance, fund utilisation varied across States, highlighting disparities in administrative capacity. Sixteen States and Union Territories, including Maharashtra, Uttar Pradesh, Tamil Nadu, West Bengal, Odisha, and Karnataka, achieved complete utilisation of allocated funds. In contrast, Punjab, Uttarakhand, Jharkhand, and Puducherry utilised only 50–70 per cent of their allocations. Nevertheless, with respect to the primary Project Development Objective (PDO) indicators validated at project closure, most targets were achieved or exceeded.

The Union Budget further confirms the project’s completion. The Notes on Demands for Grants for the Ministry of Skill Development and Entrepreneurship (Demand No. 92) report only Rs. 5.07 crore as actual expenditure on STRIVE during 2024–25, representing mainly terminal payments. No budget allocation was made from 2025–26 onwards, and the document explicitly states that the “STRIVE Scheme has concluded on 31.05.2024.”

Table 1: Financial Progress of STRIVE 

Source: Directorate General of Training, MSDE (project status update and STRIVE Outcome Achievement Report, 2024).

4. Impact

The most quantifiable social effect of STRIVE was seen in the involvement of women. A focused gender study revealed systemic obstacles to women’s access to ITIs: lack of awareness, financial limitations, reliance on male family members for admission, safety issues, insufficient restrooms and accommodations, and gender-unfriendly campus settings. In reaction, the initiative financed women trainers and counselors, female-only vocational labs, distinct sanitation amenities in more than 150 ITIs, transportation and stipend assistance, along with self-defense instruction for almost 3,912 female participants. Female enrolment increased from approximately 12 percent in 2017-18 to 21.89 percent in 2023-24, surpassing the 15 percent goal, yet it still falls short of achieving gender parity.

Regarding employability, the percentage of ITI graduates in gainful employment increased by 49 percent compared to a goal of 50 percent, while the proportion of graduates rose by 39.2 percent, almost double the 20 percent target. Industry connections were enhanced via 1,061 Dual System of Training MoUs and the participation of 6,147 apprentices in the Industry Apprenticeship Initiative, with 27 percent being women; a national tracer study revealed that 54.2 percent of the sampled pass-outs from 2021-22 had finished on-the-job training.

Investment in infrastructure surpassing Rs 300 crore allowed 168 ITIs to expand units in 87 trades, establish over 530 smart classrooms, five AR/VR labs, and enhance machinery in 23 National Skill Training Institutes, while also introducing modern courses in drone, solar, and electric vehicle technologies. These benefits, nevertheless, were focused within the 500 involved institutions, a minor portion of India’s ITI network, restricting the project’s overall impact.

Table 2. Achievement of STRIVE Project Development Objective Indicators 

Source: STRIVE Outcome Achievement Report, Directorate General of Training/MSDE, December 2024.

While STRIVE met most of its intended targets and demonstrated measurable improvements in ITI performance, the project also highlighted several implementation challenges that are important for the design of future skilling initiatives. 

5. Emerging Issues

• ISSUE 1 — Uneven State Absorption Capacity
•  Fund utilisation ranged from full utilisation in sixteen States to just 50–70 per cent in Punjab, Uttarakhand, Jharkhand and Puducherry, indicating weak project-management capacity in some State Project Implementation Units.
• ISSUE 2 — Limited Institutional Coverage
• STRIVE reformed only 500 of India’s several thousand ITIs, restricting the reach of its performance-based grant and Institutional Management Committee model.
• ISSUE 3 — Disruption from the Single Nodal Account Transition
• The mid-project rollout of Single Nodal Account guidelines caused fund-flow delays and compliance difficulties for several Implementing Agencies.
• ISSUE 4 — Employment Outcome Marginally Below Target
• The 49 per cent increase in gainful employment of graduates narrowly missed the 50 per cent target, and tracer-study coverage of employment outcomes was piloted only in select States such as Haryana.
• ISSUE 5 — Incomplete Audit Closure
• Only 22 of 32 States had submitted audit reports by project closure, leaving fiscal accountability for a sizeable share of releases unverified at closure.
• ISSUE 6 — Persistent Gender Gap
•  Despite exceeding its enrolment target, female participation at 21.89 per cent remains far below gender parity in ITI training.
• ISSUE 7 — Sustainability of Digital and Advanced Infrastructure
•  Smart classrooms, AR/VR labs and CNC/robotics equipment were introduced without a clearly identified recurring maintenance budget beyond project closure.
• ISSUE 8 — Funding Cliff at Project Closure
• Central allocation for STRIVE fell to Rs. 5.07 crore in 2024–25 and to nil thereafter, creating a sharp funding discontinuity once World Bank assistance ended.

6.  Suggestions & Way Forward

The Union Budget for 2026–27 shows that the Ministry’s main investment in Industrial Training Institutes (ITIs) has now shifted to the Pradhan Mantri Skilling and Employability Transformation via Enhanced ITIs (PM SETU) initiative. With a budget allocation of Rs. 6,140.50 crore, the scheme aims to modernize 1,000 ITIs and establish five National Centres of Excellence for Skills Development.

This also provides an opportunity to build on the lessons and successful practices of STRIVE. Instead of restricting the Performance-Based Grant Agreement and Institutional Management Committee model to 500 ITIs, these reforms should be extended to all ITIs covered under PM SETU and State skilling missions. Dedicated technical assistance and milestone-linked capacity audits should also be provided to States with weaker implementation capacity to improve project management and fund utilisation.

At the same time, India needs stronger mechanisms to measure whether skilling programmes are delivering real employment outcomes. Conducting annual, nationally representative tracer studies of ITI graduates, linked to placement cells and industry partnerships, would help policymakers understand how many trainees are finding jobs and where improvements are needed. Before launching new externally assisted projects, the Single Nodal Account under the Public Financial Management System should be fully integrated, drawing on the implementation experience gained through STRIVE, while major public financial management reforms should be sequenced carefully to avoid disrupting ongoing project implementation. Timely submission of State and Accountant General audit reports should also be made a precondition for final disbursement and project closure to strengthen fiscal accountability.

Greater industry participation should also be encouraged by expanding investments in training and apprenticeship programmes, building on the positive results of the Industry Apprenticeship Initiative and the Dual System of Training. Continued efforts are equally important to ensure that ITIs remain safe, inclusive, and welcoming for women as female enrolment continues to grow through sustained investments in hostels, transport, crèche facilities, and periodic gender audits. At the same time, recurring State-level maintenance grants and industry CSR partnerships should be encouraged to sustain the smart classrooms, AR/VR laboratories, and advanced equipment created under STRIVE beyond the project period.

Regular audits and impact assessments of externally assisted skilling projects are equally important to ensure that public investments are producing meaningful results. Mainstreaming STRIVE’s institutional reforms, outcome indicators, and governance practices into domestically funded successor schemes such as PM SETU can help avoid a funding discontinuity after externally aided projects end. Sustaining these reforms can help India build a vocational training system that is larger in scale, financially sustainable, and more equitable. In the long run, initiatives such as PM SETU, together with complementary skilling programmes, can strengthen workforce readiness, improve access to quality employment, and support the broader vision of Viksit Bharat 2047.

References

Department of Economic Affairs, Ministry of Finance. (2026). Notes on demands for grants 2026–2027: Demand No. 92—Ministry of Skill Development and Entrepreneurship. Union Budget, Government of India. https://www.indiabudget.gov.in/doc/eb/sbe92.pdf

Directorate General of Training. (2024). Skill strengthening for industrial value enhancement (STRIVE). Ministry of Skill Development and Entrepreneurship, Government of India. https://dgt.gov.in/en/Strive

Directorate General of Training & KPMG India. (2024). STRIVE outcome achievement report. Ministry of Skill Development and Entrepreneurship, Government of India. 

Ministry of Skill Development and Entrepreneurship. (2024). Annual report 2023–2024. Government of India. https://www.msde.gov.in/sites/default/files/2025-01/Annual_Report_2023-24_English.pdf

Press Information Bureau. (2024, August 5). Directorate General of Training under MSDE implemented the “Skills Strengthening for Industrial Value Enhancement” project. Ministry of Skill Development and Entrepreneurship, Government of India. https://pib.gov.in/PressReleasePage.aspx?PRID=2041505

About the Contributor

Shivali Yadav is pursuing an M.A. in Liberal Studies at Govind Ballabh Pant Social Science Institute, Prayagraj, and is an IMPRI intern. Her work focuses on gender, education, youth, and public policy, with interests in educational equity and qualitative research. 

Acknowledgement 

The author sincerely thanks the reviewers and editorial team for their valuable comments, constructive suggestions, and guidance. Their feedback helped improve the clarity, structure, and analytical depth of this policy update.

Reviewers:  Ameya Satnam, Vyomini Nathwani

Disclaimer: All views expressed in the article belong solely to the author and not necessarily to the organisation.

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