The Union government plans to transform Industrial Training Institutes (ITIs) across the country into Artificial Intelligence (AI)-driven training centres, Finance Minister Nirmala Sitharaman said on Thursday.

Addressing the Indian Foundation for Quality Management’s (IFQM) second annual symposium in the national capital, Sitharaman said that the government has been focussed on skilling and upskilling for the last two to three years and has made provisions for it in the annual budgets.

She noted that as the ITIs were not adding to the rapidly changing production environment, the central government launched a hub-and-spoke model to upgrade them.

“So, if these ITIs were to adopt the hub and spoke model within the state, we will be able to provide them the entire money required for upgrading these places for AI-driven training centres,” the FM said.

“The government has identified some institutes of excellence, such as the IITs or the Indian Institute of Science, for setting up institutions of excellence for AI-related R&D and also training,” she added.

FM Sitharaman explained that the budget aimed to ensure that AI-driven skills are given to youngsters at the ground level, even if they are school dropouts or pass outs, or had finished some kind of a qualification and have some degree but today want to acquire the AI-related skills.

“All such people will be entertained in the ITI-based formulation that will come up. These hubs will provide hands-on AI training to students,” she said, adding that many states are keen to develop the model.

Pointing out the need to urgently upskill India's youth to make them ready for 'quick and direct' employment after completing their education, the finance minister sought the private sector's participation in it.

"How to bridge the human resource insufficiencies - not adequately trained, not the kind of degree I want. The rounding off of the personalities is missing. The degree is there, but the individual is not groomed adequately enough to be a part of the large multinationals or Indian companies that you are talking about. That element has to be done by all of us. I would want private sector participation together with the government in readying youth to be fit for quick and direct employment," Sitharaman said