India stands at a pivotal moment in its growth journey. While the nation is projected to experience robust growth of 6.4% in FY 2025 and FY 2026 (IMF, 2025), driven by strong domestic consumption, manufacturing push, a growing working-age population, and general macroeconomic stability, it continues to grapple with persistent challenges, including high unemployment, poverty, income inequality, and, most recently, the impact of new US tariffs.
One powerful way to address these headwinds lies in unlocking the potential of a cross-cutting facet of the Indian economy, namely MSMEs that contribute to about 30% of the nation’s GDP. And with approximately 39% of MSMEs being women-led, India has an opportunity to unlock significant value by investing in women-owned MSMEs, not as beneficiaries but as changemakers who can help catalyze and drive economic, social, and environmental progress.
Unlocking the potential of women could add a staggering US$28 trillion to the global economy by 2025 according to the World Bank.
This is where thematic bonds, such as Orange Bonds, come into play. As the world’s first cross-cutting asset class designed for investing from both a gender and sustainability lens, Orange Bonds are designed by and for the Global South and the 99% as a solution to financing that embraces diversity, equity, and inclusion in the economic sectors that need them most.
To qualify as an Orange Bond, transactions are expected to align with three overarching principles: (1) Gender-Positive Capital Allocation; (2) Gender-Lens Capacity and Diversity in Leadership; and (3) Transparency in the Investment Process and Reporting.
A New Chapter in Impact Investing
Impact Investment Exchange (IIX), an impact investment pioneer, has been a key player in introducing, issuing, and partnering with other issuers on Orange Bonds across the globe, contributing to over US$1.3 billion in capital committed and positively impacting more than 2.6 million lives to date.
IIX’s own flagship Orange Bond series, named the Women’s Livelihood Bond™ (WLB™), debuted in 2017 and reached its seventh issuance (WLB7) in July 2025.
The first tranche of WLB7 raised US$60 million, with its two tranches expected to make it the largest bond in the series, reflecting growing interest from investors in mobilizing capital to empower women, girls, and underserved communities in the Global South despite a challenging global climate.
WLB7 was recently listed on the Singapore Exchange and is certified by Sustainable Fitch Limited as complying with Orange Bond Principles™ as well as the International Capital Market Association’s Green Bond Principles, Social Bond Principles, and Sustainability Bond Guidelines. It also complies with both the EU and UK Securitization regulations.
Utilizing an innovative blended finance approach, the bond incorporates a catalytic derisking facility supported by guarantors to lower risk-return profiles and mobilize additional private-sector investments.
Once deployed, the bond’s proceeds are expected to empower high-impact enterprises owned and operated by underserved women and communities in India, Indonesia, the Philippines, and Sri Lanka, uplifting the lives of over 773,000 women and girls and driving meaningful progress towards multiple United Nations Sustainable Development Goals (SDGs), including SDG 1 (No Poverty), SDG 5 (Gender Equality), and SDG 13 (Climate Action), among others.
Natasha Garcha, Senior Director of Innovative Finance at IIX, emphasized, “Orange Bonds are a critical asset class for markets like India, where we need to transition in a rapid and just way. To achieve this, we cannot afford to ignore half the country—women—from our investment decisions. The WLB Series has already mobilized millions for India women farmers, energy users, and entrepreneurs because we do not see women as victims, we see them as solutions to a climate-secure economy.”
India: A Vibrant Ecosystem for Impact Investments
In 2024, India’s impact investment sector mobilized nearly US $5 billion in funds for more than 430 impact enterprises across diverse industries. Building on this strong trajectory into 2025, proceeds from IIX’s recently launched WLB7 will support high-impact, women-led enterprises in priority areas such as financial inclusion, agriculture, clean energy, and water and sanitation, sectors where Indian women entrepreneurs are playing an increasingly prominent role.
For a diverse, populous nation like India, empowering women entrepreneurs has a ripple effect—from boosting rural incomes to catalyzing climate resilience through sustainable practices. By offering access to capital, the bond helps bridge systemic gaps that traditionally constrain women’s economic advancement.
Richa Kothari, Senior Vice President of Strategic Initiatives at IIX, emphasized that the WLB Series is helping steer capital markets toward a reality where inclusive and sustainable growth are the norm, not the exception. She shared the potential benefits of reshaping financial systems to empower and draw on the potential of women MSMEs:
- Banking the unbanked. Structural barriers often hinder access to traditional finance for women enterprises in underserved communities. The WLB Series helps close that gap and provides capital to help them scale and grow their businesses.
- Promoting climate-resilient livelihoods: The WLB Series channels investments into enterprises involved in clean energy, sustainable agriculture, and other areas that directly align with India’s climate goals.
- Economic multipliers. Empowered women entrepreneurs typically reinvest earnings into their families and communities, improving education, nutrition, health, and households, thus driving inclusive development.
- Blended finance in action. Public-private capital mobilization is a proven model and creates a scalable template for other development needs across India, from healthcare to renewable infrastructure.
What comes next?
As impact capital flows into India, it translates into long-term opportunities for employment, increased income, improved access to services, and skills development. Given the huge potential in India, additional flow of Orange Bonds—whether issued by IIX or local financial institutions—can serve to empower larger population groups, multiplying social and financial returns. Such bonds offer more than funding—they provide a pathway to transform financial systems to support resilience, equity, and sustainable growth for all.
For more information, please contact info@iixglobal.com or https://iixglobal.com/contact-us/
Contributor:
Natasha Garcha
Senior Director, Innovative Finance and Gender-lens Investing Specialist
Author:
Richa Kothari
Senior Vice President – Strategic Initiatives (CEO’s Office)