The approval was given by Commerce and Industry Minister Nirmala Sitharaman, the ministry said in a statement.
National Institute of Design (NID) Vijayawada also started its academic session last year.
The Ministry has approved setting up of four new NIDs in Hyderabad, Goa, Varanasi and Jaipur.
"The aim is to establish India as a hub for world class designing and NIDs shall play a crucial role by providing the skills to empower our human capital towards world class designing," it added.
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