NABARD Subscribes ₹4 Crore to NSDC’s Social Stock Exchange Issue to Support Overseas Employment for Rural Youth
The initiative aims to create overseas employment opportunities in Japan and Germany for 600 rural youth from Other Backward Classes (OBC) in Madhya Pradesh through an outcome-linked financing model.
The National Bank for Agriculture and Rural Development (NABARD) has fully subscribed ₹4 crore to the maiden Zero Coupon Zero Principal (ZCZP) issue of the National Skill Development Corporation (NSDC) on the National Stock Exchange’s (NSE) Social Stock Exchange (SSE) platform. The project, with an estimated outlay of ₹11.25 crore, aims to create sustainable overseas employment opportunities for 600 rural youth belonging to Other Backward Classes (OBC) in Madhya Pradesh.
Outcome-Linked Financing Model
The initiative is being implemented by NSDC in collaboration with the Government of Madhya Pradesh. Its financing framework links funding to measurable social outcomes.
Under the model, NABARD has subscribed ₹4 crore to the ZCZP issue. The Government of Madhya Pradesh is expected to provide outcome-linked funding of ₹5.60 crore upon achievement of agreed employment outcomes. The remaining funding is proposed to come through beneficiary contributions.
Training for Overseas Employment
The programme aims to prepare rural youth for employment opportunities in Japan and Germany by providing internationally relevant skills. The training and placement support will include language training, technical skill development, certification and cultural orientation.
Beneficiaries will also receive end-to-end assistance for overseas placement, including documentation and deployment support. The initiative aims to create sustainable livelihood opportunities and improve income prospects for rural households by connecting them with global labour markets.
Focus on Measurable Social Outcomes
A key feature of the project is its focus on verified employment outcomes and sustained livelihood enhancement rather than training completion alone. The programme is designed to link funding with measurable results, placing social impact at the centre of its implementation.
The approach reflects an outcome-based model of development financing, in which the achievement of agreed employment outcomes determines the release of a portion of the funding.
Social Stock Exchange as a Financing Platform
The transaction highlights the potential of the Social Stock Exchange to mobilise resources for development initiatives with measurable outcomes. Established under the regulatory framework of the Securities and Exchange Board of India (SEBI), the SSE aims to facilitate participation by institutions, philanthropies, foundations, corporates and other stakeholders in financing social initiatives through transparent and accountable mechanisms.
The Zero Coupon Zero Principal instrument enables funding for social projects without creating repayment obligations for implementing entities.
NABARD’s Role in Social Finance
NABARD’s participation reflects its commitment to strengthening the Social Stock Exchange ecosystem and exploring financing mechanisms to address rural development challenges.
The initiative is also expected to provide experience in designing, implementing and monitoring outcome-linked development programmes and using capital to support social impact at scale.
The project brings together development finance institutions, government agencies and specialised implementation partners around defined and measurable outcomes. Such collaborative financing models can help strengthen accountability, improve resource utilisation and extend development programmes to underserved communities.
By connecting rural youth with global employment opportunities and linking financing to verifiable social outcomes, the initiative aims to demonstrate how innovative financial instruments can support inclusive and sustainable rural development. NABARD hopes the experience gained through the programme will encourage wider adoption of Social Stock Exchange-based financing models across development sectors.