Germany has announced financial support of EUR 1.3 billion (around ₹11,700 crore) for India to help the country work on key areas like clean energy, climate protection, green cities, better public transport, and sustainable use of natural resources. Most of this support will come in the form of concessional loans, which means India will get the money at low interest rates and on easier terms.

This announcement was made during the India-Germany Government Negotiations on Development Cooperation 2025, where both countries renewed their strong partnership under the Green and Sustainable Development Partnership (GSDP). This partnership focuses on long-term, climate-friendly development and greener growth.

According to an official statement, the funds will also help strengthen cooperation in skill development, especially in the renewable energy sector, where India is rapidly expanding. Germany’s contribution is aimed at supporting India’s efforts to shift towards clean and sustainable energy solutions.

Christine Toetzke, a senior official from Germany’s Federal Ministry for Economic Cooperation and Development, said that India continues to be an important strategic partner. She added that both nations are working together with trust and a shared commitment to achieving sustainable growth and addressing common global challenges.

German Ambassador to India, Philipp Ackermann, also highlighted the special nature of the GSDP. He said that Germany does not have such a deep and ambitious partnership with any other country except India. He described it as a collaboration of two mature nations working together to solve major global issues like climate change.

Ahead of the negotiations, Christine Toetzke visited Bengaluru to understand ongoing Indo-German projects, especially those under the Green Urban Mobility Partnership. This initiative focuses on creating low-carbon, accessible, and affordable transport systems. One example of this cooperation is the Bangalore Yellow Line Metro, which was recently inaugurated. The project received a EUR 340 million loan from Germany’s development bank, KfW, and has created around 25,000 jobs. Several German companies, including Siemens and Voith, contributed to the project.

Another successful example is the Living Lab in Bengaluru, where government, private companies, and researchers work together on climate-smart innovations. One key project is India’s first rooftop solar-powered EV charging station with second-life batteries, which has been expanded from Bengaluru to Surat to support electric buses.