Jayant Chaudhary Showcases India’s Leadership in Outcome-Based Financing at FfD4

Shri Jayant Chaudhary, Minister of State (Independent Charge) for Skill Development and Entrepreneurship and Minister of State, Ministry of Education, spotlighted India’s groundbreaking approach to Outcome-Based Financing (OBF) at the Fourth International Conference on Financing for Development (FfD4) held in Seville, Spain. The high-level event, co-hosted by the Organisation for Economic Co-operation and Development (OECD) and the Outcomes Finance Alliance, brought together ministers, multilateral institutions, and philanthropic leaders to explore innovative solutions for achieving the Sustainable Development Goals (SDGs).

India’s delegation to FfD4 was led by Union Finance Minister Smt. Nirmala Sitharaman, who delivered a keynote address underscoring the importance of outcome-based models in ensuring effective public spending. In alignment with this message, Shri Chaudhary participated in a flagship panel discussion titled “Accelerating SDG Impact through Outcomes-Based Financing,” where he shared India’s success in embedding results-focused financing mechanisms into its development architecture.

India’s OBF Leadership: From Pilots to Institutional Practice

“India is not just experimenting with outcome-based financing—we are institutionalizing it,” Shri Chaudhary stated, highlighting programs such as the Skill Impact Bond and Project AMBER (Accelerated Mission for Better Employment and Retention). These pioneering models exemplify how government resources, private capital, and philanthropic funding can converge to deliver measurable social outcomes at scale.

The $14.4 million Skill Impact Bond, for instance, is the first development impact bond for skills training in India, co-created with partners including the British Asian Trust, HSBC India, CIFF, and others. It focuses on upskilling and employing over 50,000 youth—60% of whom are women. The project’s emphasis on gender inclusivity, employer alignment, and performance-linked disbursements serves as a blueprint for similar initiatives.

Global Engagement and Strategic Bilateral Meetings

On the sidelines of FfD4, Shri Chaudhary held a series of high-impact bilateral discussions with global stakeholders, focusing on scaling up outcome-based finance, fostering gender-inclusive entrepreneurship, and enhancing data-driven governance.

Key meetings included:

• Ms. Mary-Beth Goodman, Deputy Secretary-General, OECD: Discussions centered around OECD’s technical support in building impact measurement frameworks and data systems to strengthen India’s OBF architecture.

• Ms. Kate Hampton, CEO, CIFF: The two deliberated on gender-responsive skilling models, expanding the reach of the Skill Impact Bond, and integrating employer feedback into skill programs.

• Mr. Richard Hawkes, CEO, British Asian Trust, and Mr. Tom Hall, CEO, UBS Optimus Foundation: Shri Chaudhary explored strategies to unlock private capital and channel it into high-impact employment and entrepreneurship programs in India.

• State Secretary Patricia Danzi, Director-General, Swiss Agency for Development and Cooperation (SDC): Talks focused on gender-focused outcome-based models, especially for nano-entrepreneurship and women-led ventures, along with tapping into the India-Switzerland Trade and Economic Partnership Agreement (TEPA) for job creation opportunities.

A Model for the World: India’s Vision for Scalable, Sustainable Development

The high-level panel saw participation from ministers and senior officials from Colombia, Kenya, Norway, South Africa, Turkey, Canada, the UK, and Sierra Leone, as well as agencies like the World Bank and UNFPA. Shri Chaudhary’s contribution drew widespread appreciation for India’s commitment to aligning finance with outcomes—particularly in critical areas such as skills, livelihoods, and women’s empowerment.

He emphasized that India’s journey from traditional input-based funding to results-driven financing marks a transformative shift in governance. By institutionalizing transparency, accountability, and performance-based disbursal, India is setting an example for global South-South cooperation and cross-sector innovation.

Bridging Finance and Impact: The Road Ahead

Shri Chaudhary reiterated that India stands ready to partner globally to scale outcome-based models and bring innovative finance solutions to underserved populations. He noted that institutional partnerships, blended finance models, and robust digital data systems are critical enablers for OBF success.

Outcome-Based Financing is more than a financial tool—it is a governance philosophy that ensures public funds translate into real-world impact. With a growing ecosystem of partners and a strong commitment from the government, India is well-positioned to lead the global shift toward financing mechanisms that reward measurable progress rather than just activities.

As the world intensifies efforts to meet the 2030 SDG targets, India’s OBF model offers a scalable, adaptable pathway for ensuring that every dollar spent is a step toward lasting social change.