Germany has committed around €1.3 billion to India, mainly through concessional loans, focusing on climate and energy, sustainable urban planning, green mobility, and the responsible management of natural resources. The funding will also bolster bilateral collaboration in skills development, particularly in the renewable energy sector, according to an official statement.
The announcement followed the conclusion of the 2025 India-Germany Government Negotiations on Development Cooperation, which reaffirmed the countries’ robust and forward-looking partnership under the Green and Sustainable Development Partnership (GSDP).
“Germany’s latest commitments, totaling nearly €1.3 billion in concessional loans, target critical areas including climate and energy, sustainable urban development, green urban mobility, and natural resource management,” the statement noted. “Additionally, the cooperation will enhance skills development initiatives, especially in renewable energy.”
Christine Toetzke, Director General for Asia, Latin America, the Middle East, and Eastern/Southeastern Europe at Germany’s Federal Ministry for Economic Cooperation and Development (BMZ), highlighted India’s role as a key strategic partner under the current German government.
“I am pleased to continue our trusted development partnership under the GSDP framework,” Toetzke said. “The projects we are committing to today mark a shared path toward sustainable prosperity while addressing global challenges together.”
Philipp Ackermann, Germany’s Ambassador to India, underlined the distinctive nature of the GSDP collaboration.
“Our work under the GSDP is unique, not just in scale or ambition, but in the spirit of equal partnership,” Ackermann said. “It goes beyond conventional development aid—this is mature collaboration between two nations addressing the most urgent global issues. I am proud that we concluded the negotiations efficiently and look forward to advancing these initiatives in the coming year.”
Ahead of the talks, Toetzke visited Bengaluru to observe the ‘Indo-German Green Urban Mobility Partnership for All,’ a GSDP flagship initiative promoting low-carbon, accessible, safe, and affordable urban mobility. Her visit highlighted India’s innovative public transport projects and cutting-edge digital mobility solutions.
A tangible example of ongoing Indo-German cooperation is the recently inaugurated Yellow Line Metro in Bangalore, financed with a €340 million loan from KfW, Germany’s development bank. The project enhances sustainable urban transit, reduces emissions, and has generated around 25,000 jobs, with German firms such as Siemens, Knorr-Bremse, Hübner, and Voith contributing key components and services.
The Living Lab in Bangalore further showcases climate-smart innovation, supported by partnerships between government, industry, academia, civil society, and companies including Bosch and Nunam. Among its achievements is India’s first rooftop solar-powered EV charging station using second-life batteries, developed by Nunam and later expanded from Bangalore to Surat to support the city’s public e-bus network.
Launched in 2022, the Indo-German Green and Sustainable Development Partnership (GSDP) continues to serve as a strategic framework for climate-aligned, sustainable development collaboration between the two nations.
