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India’s First Skill Impact Bond Empowers 50,000 Youth, Closes Gender Gaps in Employment

July 29, 2025

By Aakanksha Singh

Jul 29, 2025

Aakanksha Singh

The Skill Impact Bond is India’s first development impact bond for skills training and employment. It focuses on certification, job placement, and three-month job retention for young trainees.

Launched in 2021, the Skill Impact Bond aims to train 50,000 young people, with over 70% women enrolled across four cohorts. Top states include Jharkhand, Uttar Pradesh, Maharashtra, Odisha, and Telangana.

Photo: Pexels

SIB tracks three payment-linked outcomes: - Certification after training - Placement in sector-related jobs within 60 days - Retention in the job for at least 3 months

Photo: Pexels

Certification Results Male trainees show high certification rates (90-94%). Female certification rates improved from 86% to 92% across cohorts, narrowing the gender gap.

Photo: Pexels

Placement Findings Male placement rates held strong between 80-84%. Female placement rates grew significantly from 66% to 81%, reducing gender disparities.

Photo: Pexels

Retention Trends Retention rates improved for both genders from Cohort I to IV. By Cohort IV, women’s retention (66%) slightly surpassed men’s (66%), closing the gender gap.

Photo: Pexels

Distribution by sector Female: apparel sector (primarily), BFSI, retail, telecom Male: Construction sector (primarily), IT, ITeS, automotive, BSFI, capital goods, retail, telecom

Photo: Freepik

States (Highest proportion) Jharkhand = 27% Uttar Pradesh = 9.1% Maharashtra = 8.7% Odisha = 6.7% Telangana = 6.7%

Photo: Pexels

Challenges to Employment Women cited household responsibilities, family consent, and unsuitable job locations as barriers. Men often choose further education, or face communication gaps in hiring.

Photo: Pexels

Key findings: - Rising female employment - Over 70% enrolment of female trainees - Growth in female self-employment - Declining male employment - Male trainees consistently earn more than female trainees

Photo: Pexels

SIB shows promising progress in empowering women through skills and jobs. The gender gap in outcomes is closing, highlighting successful gender-responsive design.

Photo: Pexels

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