DBT Bureau
Pune, 9 Oct 2024
The Skill Impact Bond, launched by the National Skill Development Corporation in 2021, has successfully trained more than 29,000 first-time job seekers from low-income families across 18 sectors in 24 states and union territories wherein 73% of them have joined jobs. This initiative aims to equip 50,000 young Indians by bridging the gap between skilling and employment, where women account for 60% of the reach.
A key feature of the Skill Impact Bond is its strong gender-responsive approach. With 74% of trainees being women from low-income backgrounds, many with limited education and no prior work experience, the program has successfully engaged and retained these women in the workforce. Strategies such as family engagement, workplace familiarization, mobility support, and post-placement assistance have been instrumental in achieving these outcomes.
During his address, Atul Kumar Tiwari, Secretary, Ministry of Skill Development & Entrepreneurship said, “When thoughtful minds collaborate together, we don’t just invest; we build communities. We create pathways to better livelihoods, stronger families, and a more resilient nation. The Skill Impact Bond exemplifies this vision, having already trained nearly 29,000 first-time job seekers from low-income families across 24 states and union territories. It reflects true social responsibility by shifting focus from short-term inputs to long-lasting impact. With SIB 2.0, we aim to raise the bar, aligning with the Hon’ble Prime Minister’s vision of a future-ready, inclusive workforce that will propel India towards global leadership.”
While addressing the gathering, Ved Mani Tiwari, COO (Officiating CEO), NSDC & MD, NSDC International said, “Skill Impact Bond has reached 29,000 lives across 24 states and 18 sectors with a 57% retention rate, aiming for 60%. Moving forward, the focus is on Employability, Employment, Income Enhancement, and Entrepreneurship. By leveraging digitalization and AI-driven innovations in healthcare, education, and beyond, SIB aligns with India’s $35 trillion economic vision for 2047, building a future-ready workforce and fuelling a more inclusive start-up ecosystem.”
Alongside National Skill Development Corporation (NSDC), the Skill Impact Bond’s coalition of partners comprises the British Asian Trust, Michael & Susan Dell Foundation, Children’s Investment Fund Foundation (CIFF), JSW Foundation, HSBC India, Dubai Cares, United States Agency for International Development (USAID), UK Government’s Foreign, Commonwealth and Development Office (FCDO), Dalberg Advisors, and Oxford Policy Management. The skill training is delivered on-ground by Learnet Skills Limited, Magic Bus India Foundation, and PanIIT Alumni Reach For India Foundation, all selected for their capacity to innovate, scale, and reach diverse target groups.
Bharath Visweswariah, Executive Director – India, British Asian Trust during his address said, “The Skill Impact Bond’s latest results affirm the power of an instrument like an impact bond to transform the way skilling is approached and financed in India. With each cohort the number of young people and women securing employment is increasing, with 7 out of every 10 women trained through the Skill Impact Bond now successfully securing jobs. Our independent evaluator is rigorously testing all the data and the data here is clear – linking funding to outcomes is having an incredible impact.”
Independent verification of the program reveals that 70% of enrolled women and 81% of enrolled men have secured jobs following their training. Job retention has also shown promising outcomes, with 56% of women and 62% of men retaining their jobs for at least three months. Furthermore, among those placed in jobs, 40% of women and 66% of men continued working for six out of twelve months. Notably, job retention rates for women have improved significantly, increasing from 48% in the first cohort to 61% by the third cohort.
With a budget of USD 14.4 million, the Skill Impact Bond is designed to achieve measurable outcomes linked to job placement and retention. This innovative financial model ensures accountability and effective use of resources aimed at enhancing employment opportunities for youth, particularly women.
As the program continues to scale its operations and mainstream its principles, it remains committed to transforming India’s skilling ecosystem through a focus on tangible outcomes and innovative practices.
The focus on employment outcomes has influenced all aspects of programme design and delivery, resulting in the promising results the Skill Impact Bond is now seeing. The coalition’s prioritisation of tight performance management, incentive alignment between all stakeholders, engagement with employers to ensure fit-for-purpose training, and tech-enabled, data-driven decision-making ensures the impact bond is constantly optimising and innovating to meet its goals.
