Skill Impact Bond: Initiative skilled nearly 18,000 first-time job seekers

Source: The post is based on the article “Skill Impact Bond: Initiative skilled nearly 18,000 first-time job seekers” published in Business Standard on 17th June 2023

What is the News?

Skill Impact Bond Initiative has skilled nearly 18,000 first-time job seekers, 72% of whom are women.

What is the Skill Impact Bond Initiative?

Skill Impact Bond (SIB) is India’s first development impact bond for skilling and employment.

Launched by: National Skill Development Corporation (NSDC) in collaboration with global partners

Target: To benefit 50,000 young Indians (over 4 years), with a focus on empowering women (60% of beneficiaries).

Significance: It is a public-private partnership (PPP) model that shifts its focus from inputs like training and certification to outcomes like job placement and retention for India’s youth.

What is Impact Bond?

Impact bonds are innovative financing instruments that leverage private sector capital and expertise, with a focus on achieving results. It shifts the focus from inputs to performance and results. 

Rather than a government or a donor financing a project upfront, private investors (risk investors) initially finance the initiative and are repaid by ‘outcome funders’, only if agreed-upon outcomes are achieved.

The outcomes to be measured are agreed upon at the outset and independently verified.