Training effectiveness is the outcome of the training measured in terms of performance of the trainee. Production output is the index for the performance. Increased production output after the training programme is the success of the training. For a sustainable skill development initiative in the current globalized technology sharing situation, the study of training effectiveness is the best solution to fill the gap between the need of the industries and the skill supplied by the ITIs. This study analyses the effectiveness of the training offered in Industrial Training institutes and its impact on industries through the performance of the employees in industries. Data were collected using convenience sampling method. The employees who were trained by ITIs and working in various industries in Hosur, Krishnagiri District, Tamil Nadu, India are the respondents. This book concludes that the promotion of innovation and creativity, improvement of skills and knowledge and enhancement of trainee capacity have direct and positive influence on performance of employees, while, performance of employees has direct and positive influence on performance of the companies.