60 Years of Indo-German Development Cooperation (2018 | Issue 2)

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India & Germany

India is one of Germany’s most important development partners. Both countries have been working side by side for 60 years now. Taking responsibility for global issues, they strive to achieve the Sustainable Development Goals (SDGs) and to make economic growth more inclusive and sustainable. What’s Up, Germany? looks at the key areas of Indo-German development cooperation.

Times have changed and so has India. Its development requirements have evolved over the years. First, Indo-German development cooperation (DC) focused largely on industrial growth. Later, poverty reduction and rural development became a priority. Today, after 60 years, the main areas of Indo-German development cooperation are energy, environment and sustainable urban development. The know-how and expertise that Germany shares with India is the main value-add.

The Way it Works

India has its own national reform programmes and priorities. Germany contributes to these programmes by providing financial and technical cooperation in the form of concessional loans and technical advice. The aim is to build on India’s own efforts and support common goals as equal partners:

  • Bringing in more renewable energies and improving energy efficiency
  • Protecting the environment and battling climate change
  • Building smart cities and improving urban mobility
  • Managing natural resources and cleaning up India’s rivers
  • Promoting small and medium-sized enterprises (SMEs)
  • Improving vocational training and employability

This is done by demonstrating model solutions through lighthouse projects and enabling India to expand and replicate them throughout the country independently.

Funding Fundas

In no other country in the world has Germany mobilised as much money for development as it has for India. Its development cooperation contribution is around €8.5 billion, making it India’s second-largest bilateral donor. In 2017, Germany committed new funds of around €1.054 billion in support of India’s development goals.

Chancellor Angela Merkel and PM Narendra Modi at the Hannover Trade Fair (2015)

Image: © picture alliance / dpa

Chancellor Angela Merkel and PM Narendra Modi at the Hannover Trade Fair (2015)

DC Matters!

Development cooperation (DC) is crucial for progress. Through it, the world works together to guarantee basic universal standards by supporting the 2030 Agenda’s Sustainable Development Goals (SDGs). The purpose is to support less developed countries to ensure their social progress and economic growth.

DC has many dimensions, with technical cooperation and knowledge sharing increasingly taking centre stage. The idea is that international partners work together as equals, jointly coming up with solutions for developmental challenges. It’s about taking action and sharing responsibility for the planet we live on.

The German Federal Ministry for Economic Cooperation and Development (BMZ) frames the guidelines and long-term strategies for Germany’s development policy.

KfW Development Bank handles financial cooperation on behalf of the German government. It provides concessional loans and some grants.

The German Agency for International Cooperation (GIZ) is a government-owned implementation organisation in charge of technical cooperation. It works closely with Indian partners to deliver technical, economic and organisational support.

German Investment Corporation (DEG) is a subsidiary of KfW. It offers long-term finance and advice to German and Indian private companies.

National Metrology Institute of Germany (PTB) is Germany’s highest and only authority that provides correct and reliable measurements. It is involved in projects that establish quality infrastructure in developing countries.

The German Federal Ministry for Economic Cooperation and Development (BMZ) frames the guidelines and long-term strategies for Germany’s development policy.

KfW Development Bank handles financial cooperation on behalf of the German government. It provides concessional loans and some grants.

The German Agency for International Cooperation (GIZ) is a government-owned implementation organisation in charge of technical cooperation. It works closely with Indian partners to deliver technical, economic and organisational support.

German Investment Corporation (DEG) is a subsidiary of KfW. It offers long-term finance and advice to German and Indian private companies.

National Metrology Institute of Germany (PTB) is Germany’s highest and only authority that provides correct and reliable measurements. It is involved in projects that establish quality infrastructure in developing countries.

DC Matters!

Development cooperation (DC) is crucial for progress. Through it, the world works together to guarantee basic universal standards by supporting the 2030 Agenda’s Sustainable Development Goals (SDGs). The purpose is to support less developed countries to ensure their social progress and economic growth.

DC has many dimensions, with technical cooperation and knowledge sharing increasingly taking centre stage. The idea is that international partners work together as equals, jointly coming up with solutions for developmental challenges. It’s about taking action and sharing responsibility for the planet we live on.