India is institutionalizing outcome-based financing for skilling: Jayant Chaudhary
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India is institutionalizing outcome-based financing , and not just experimenting with it, to build a resilient, inclusive skilling ecosystem in the country, Jayant Chaudhary, minister of state (independent charge) for the ministry of skill development and entrepreneurship said.'Models like the Skill Impact Bond and Project AMBER demonstrate how public funds, philanthropic capital, and private investment can come together to drive measurable social impact at scale,' he said while speaking at a panel discussion in the fourth international conference on financing for development (FfD4) in Seville, Spain.According to a statement issued by MSDE, minister Chaudhary reiterated that India stands ready to partner with global stakeholders in taking these models to scale.Outcome-Based Financing (OBF) is emerging as a powerful tool to ensure that public investment translates into real, measurable outcomes — especially in critical areas like skilling, employment, and women's empowerment.The Skill Impact Bond links funding to achievement of outcomes, inverting the process of conventional grant-making which often funds activities and inputs. The initial financing to training providers is supported by risk investors, who are repaid by outcome funders on the achievement of predetermined, independently verified outcomes achieved by training partners.This results in maximum impact for money spent, aligned incentives between partners, thus creating measurable social impact that spur social change.India's Skill Impact Bond aims to benefit 50,000 young Indians over four years, with 60% of the beneficiaries being women.Project AMBER or the Accelerated Mission for Better Employment and Retention is a joint initiative by the ministry of skill development and entrepreneurship (MSDE), National Skill Development Corporation (NSDC), and Generation India Foundation (GIF).It focuses on improving employment and retention outcomes for 30,000 trainees, with a target of 50% women participation.By institutionalizing OBF, India is not only enhancing transparency and accountability in its development financing but also creating a replicable model for the world, MSDE said.With strong partnerships, robust data systems, and a shared commitment to results, India is positioning itself as a global leader in leveraging innovative finance for inclusive and sustainable growth, it added.
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