The fund aims to mobilise public and private capital to expand outcomes-based financing (OBF) within India's skilling ecosystem, directly linking investments to verified employment results.

The initiative is designed to unlock sustainable livelihoods for young people across India and is expected to become the largest outcomes-based financing effort for skilling globally. It represents a significant advancement in promoting OBF in the country's skilling sector. This follows India's growing global recognition in outcomes-based financing, a theme emphasised by Minister Chaudhary at the Outcomes Finance Alliance Summit 2026 in Cape Town, where he presented India's method of integrating public policy, private investment, and measurable employment outcomes.

The Skills Outcomes Fund will be anchored by the National Skill Development Corporation (NSDC) under the Ministry of Skill Development and Entrepreneurship (MSDE), in collaboration with non-profit and philanthropic organisations. This initiative offers a platform for government and industry to collectively develop innovative financing methods, focusing on tangible outcomes to strengthen the skilling ecosystem.

During a funder roundtable hosted by the British Asian Trust, the first in a campaign series to build the Skills Outcomes Fund, Minister Chaudhary stated, "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."

Manisha Sensarma, Senior Economic Adviser at 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 institutionalising such approaches within India's broader skilling and human capital strategy."

Arunkumar Pillai, CEO of NSDC, commented, "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 detailed discussions facilitated by the British Asian Trust and The Blended Finance Company on scaling outcomes-based financing in India's skilling ecosystem and mobilising long-term capital for employment outcomes. Participants stressed the need to align public policy, private capital, and credible verification systems to ensure investments yield sustainable jobs and income opportunities.

This initiative marks a strategic shift in designing and financing skilling programmes, moving beyond traditional success metrics such as enrolment and certification towards measurable, verified employment outcomes, including job placement, retention, and career progression. It aligns with the Government of India's vision of developing a future-ready, inclusive workforce under Viksit Bharat 2047 and the draft National Policy for Skill Development and Entrepreneurship, 2026, which emphasises outcome orientation as essential for strengthening India's human capital ecosystem.

The Skills Outcomes Fund builds upon the success of India's first outcomes-based initiative, the Skill Impact Bond launched by NSDC in 2021 with development and philanthropic partners. With an investment of around ₹130 crore, the Skill Impact Bond has delivered robust results, training over 34,000 youth, 74% of whom are women, across 21 states in 16 sectors covering more than 30 job roles. Independent verification up to Cohort-6 shows 92% certification, 76% job placement, and 62% job retention-outcomes well above national benchmarks.

Expanding on this foundation, the Skills Outcomes Fund aims to transition India's outcomes-based financing from pilot phases to scale and institutionalisation. It employs a blended finance model, combining government funding from MSDE with private sector investment. The fund's employer-led, demand-driven skilling model targets growth sectors such as IT-ITeS, BFSI, automotive, healthcare, logistics, green jobs, and electronics.

The roundtable assembled leading stakeholders from philanthropic, corporate, and development sectors actively shaping India's skilling and livelihoods framework. Attendees included representatives from 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.