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- Why in News?
- The Minister of State for Skill Development and Entrepreneurship recently highlighted the Social Impact Bond (SIB) as a successful example of achieving tangible social outcomes.
- Key Provisions:-
- SIB is India's first Development Impact Bond specifically focused on skill development and employment generation. Launched in 2021, the initiative aims to train and place 50,000 young Indians in jobs over a span of four years, with a strong emphasis on gender inclusion—targeting 60% of the beneficiaries to be women.
- This results-based financing model is implemented by the Ministry of Skill Development and Entrepreneurship through the National Skill Development Corporation (NSDC). Under this model, private investors fund the program initially, and the government repays them only upon the achievement of agreed-upon outcomes, such as employment and retention rates.
- SIB represents a shift toward outcome-oriented funding in public programs, encouraging accountability, innovation, and partnerships to address India’s growing demand for skilled labor.