Rethinking Skilling Finance Can Returnable Grants Bridge the Livelihood Gap?

Despite a robust infrastructure development and rapid economic growth, a vast majority of Indians, especially those in the informal sector, continue to be left behind from this growth story. Every month, over a million Indians enter the workforce. Yet, nine out of ten end up in the informal sector, without stable or productive jobs, written contracts, or access to social security. The National Accounts Statistics 2024 point to a deepening post-COVID wage crisis, with household incomes on a steady decline. At the same time, limited access to capital and skilling traps workers in a cycle of low productivity, poor job opportunities, and sluggish economic growth. In response, Samhita and Bajaj Finserv are piloting an intervention that combines the power of innovative blended finance tools alongside catalytic CSR funding to bridge the widening gaps in income and employment opportunities faced by India’s workforce. This case study explores this first-of-its-kind model that enables an irreversible increase in individual incomes by unlocking access to skill development and placement support.