New
Delhi: Shri Jayant Chaudhary, Hon’ble Minister of State (Independent Charge)
for Skill Development and Entrepreneurship and Minister of State for Education,
Government of India, today initiated the campaign to
build a Skills Outcomes Fund, a first-of-its-kind initiative aimed at
unlocking aspirational livelihoods for youth from low-income backgrounds. The
fund envisages to mobilise public and private capital to scale outcomes-based
financing (OBF) in India’s skilling ecosystem, linking investments directly to
verified employment outcomes.
The
Skills Outcomes Fund aims to unlock aspirational and sustainable livelihoods
for youths from low-income backgrounds across India. This initiative is
expected to become the largest outcomes-based financing (OBF) initiative for
skilling globally and marks a significant step in strengthening the adoption of
OBF within India’s skilling ecosystem. The initiative builds on India’s growing
global leadership in outcomes-based financing, a theme highlighted at the Outcomes
Finance Alliance Summit 2026 in Cape Town, where Hon’ble Minister Shri
Jayant Chaudhary outlined India’s approach to aligning public policy,
private capital, and measurable employment outcomes.
The proposed
Skills Outcomes Fund will be anchored by the National Skill Development
Corporation (NSDC) under the aegis of the Ministry of Skill Development and
Entrepreneurship (MSDE), in partnership with not-for-profit and philanthropic organizations
/ stakeholders. It creates a unique opportunity for government and industry to
work together in advancing innovative financing approaches and strengthen the
skilling ecosystem with a clear and measurable focus on outcomes.
Chairing
the funder roundtable hosted by the British Asian Trust, the first in a series
as part of the campaign to build ‘Skills Outcomes Fund’, Hon’ble Minister Shri
Jayant Chaudhary said, “India’s skilling journey is entering a new phase, one
that places outcomes at the centre of our efforts. The Skills Outcomes Fund
represents our commitment to ensuring that skills translate into real
opportunities, sustained employment, and dignity of work for our youth. By bringing
together government, industry, and philanthropic partners around measurable
results, we are creating a model that can unlock large-scale impact and expand
aspirational livelihood pathways for young people across India.”
Ms.
Manisha Sensarma, Senior Economic Adviser, Ministry of Skill Development and
Entrepreneurship (MSDE) added, “As India’s skilling
ecosystem matures, the policy conversation is naturally shifting from measuring
inputs to measuring outcomes. Outcomes-based financing provides a powerful
framework to strengthen accountability, improve program efficiency, and ensure
that public and private investments are directly linked to employment results.
The Skills Outcomes Fund represents an important step toward institutionalizing
such approaches within India’s broader skilling and human capital strategy.”
Mr.
Arunkumar Pillai, CEO, National Skill Development Corporation (NSDC) said,
“The experience of the Skill Impact Bond has shown that when incentives across
training providers, employers, investors, and government are aligned around
verified outcomes, the entire skilling ecosystem becomes more focused on real
employment results. The Skills Outcomes Fund is the natural next step, building
on this evidence to scale outcomes-based approaches and strengthen long-term
employment pathways for India’s youth.”
The funder roundtable featured in-depth discussions facilitated by the British
Asian Trust and The Blended Finance Company on how India can scale
outcomes-based financing within the skilling ecosystem and mobilise long-term
capital for employment outcomes. Participants highlighted the importance of
aligning public policy, private capital, and credible verification systems to
ensure that investments translate into sustainable jobs and income opportunities
for youth.
The
visionary initiative reflects a strategic shift in how skilling programs are
designed and financed, moving beyond traditional metrics of success such as
enrolment and certification, towards measurable, verified employment outcomes including
job placement, retention, and career progression. This approach aligns closely
with the Government of India’s vision of building a future-ready, inclusive
workforce under Viksit Bharat 2047, as well as with the draft National Policy
for Skill Development and Entrepreneurship, 2026, which identifies outcome
orientation as a core principle for strengthening India’s human capital
ecosystem.
The
proposed Skills Outcomes Fund would build on the success of India’s first
outcomes-based initiative, the Skill Impact Bond, launched by the National
Skill Development Corporation (NSDC) in 2021 in partnership with a coalition of
development and philanthropic partners. With an outlay of approximately ₹130
crore, the Skill Impact Bond has demonstrated strong and consistent results. To
date, over 34,000 youth, 74% of them being women, from across 21 states have
been trained in 16 sectors for over 30 job roles. Independent verification up
to Cohort-6 shows that 92% of trainees have been certified, 76% placed in jobs,
and 62% retained in jobs. These outcomes significantly exceed national
benchmarks.
Building
on this, the Skills Outcomes Fund represents the next phase of OBF in India’s
skilling ecosystem, from pilot to scale and eventually its institutionalization.
A key feature of the Skills Outcomes Fund is its blended finance model where
government funding from MSDE will be supplemented by private sector funding. Additionally,
its employer-led, demand-driven skilling model will align with high-growth,
aspirational, future-oriented sectors such as IT-ITeS, BFSI, automotive,
healthcare, logistics, green jobs, and electronics.
The roundtable brought together a
distinguished group of partners from the philanthropic, corporate, and
development ecosystem who are actively shaping India’s skilling and livelihoods
landscape. Participants included representatives from organisations such as Gas
Authority of India Limited (GAIL), Hindustan Urvarak & Rasayan Limited
(HURL), the Children’s Investment Fund Foundation (CIFF), the Michael & Susan
Dell Foundation, JPMorgan Foundation, the Gates Foundation, EY Foundation, JSW
Foundation, Bajaj Finserv, NSE Foundation, the Naveen Jindal Foundation, GMR
Varalakshmi Foundation, Hindustan Unilever Limited, Bridges Outcomes
Partnerships, and GIZ. Their participation reflects growing cross-sector
momentum behind outcomes-based financing as a tool to strengthen employment
outcomes and scale innovative skilling models.
As India
seeks to realise its demographic dividend, the Skills Outcomes Fund represents
not just a new financing mechanism but a systemic shift toward linking
investments in skilling with real employment outcomes. By bringing together
government, philanthropy, and industry, the initiative aims to create a
scalable model that can expand livelihood opportunities for millions of young
people while reinforcing India’s leadership in outcomes-based financing for
skills and employment.