What is Skill Impact Bond?

The Skill Impact Bond (SIB) is India’s first outcomes-based financing initiative for skilling and employment, designed to make 50,000 young Indians employment-ready over four years, with 60% of beneficiaries being women. Unlike traditional funding models that focus on training delivery, SIB links financing to measurable outcomes such as job placement, retention, and sustainable livelihoods. Upfront funding is provided by risk investors, while outcome funders repay them only after independently verified results are achieved, ensuring greater accountability and impact. By prioritizing employment outcomes over inputs, the initiative encourages effective programme delivery and better value for investment. In addition, the Skill Impact Bond strengthens India’s technical and vocational education ecosystem through knowledge exchange, evidence generation, data-driven learning, and the mainstreaming of best practices, creating a more resilient and outcome-oriented skilling ecosystem.

How it works?

Investment

Risk investors commit USD 4 million, used to fund service provider interventions upfront

Delivery

Service Providers deliver skilling interventions to improve employment outcomes

Verification

Employment outcomes are independently verified by third-party evaluator

Repayment

Outcome funders repay up to USD 14M over 4 years for achieved outcomes.

Female

Male

Unmarried

Married

Consortium of Partners

The Skill Impact Bond is an initiative led by the National Skill Development Corporation (NSDC) in partnership with a coalition that includes NSDC and the Michael & Susan Dell Foundation (MSDF) as risk investors. The outcome funders are The Children’s Investment Fund Foundation (CIFF), JSW Foundation, HSBC India, and Dubai Cares, convened by the British Asian Trust, as the transaction manager. Technical partners include FCDO (UK Government), while Oxford Policy Management serves as the independent evaluator. NSDC and Dalberg Advisors jointly provide performance management support for effective implementation. As risk investors, NSDC and MSDF have committed USD 4 million as upfront working capital to enable service providers to deliver training over its four-year duration. Training is delivered through NSDC-affiliated training partners, identified through a rigorous assessment process and closely monitored to ensure quality, performance, and achievement of employment outcomes.

Techinal Partners