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Germany Pledges €1.3 Billion to India for Climate and Urban Projects Under GSDP

The package consists largely of concessional loans agreed at 2025 development-cooperation negotiations under a partnership geared to Paris-aligned growth.

Overview

  • The commitment was announced at the conclusion of the IndiaGermany Government Negotiations on Development Cooperation 2025 under the Green and Sustainable Development Partnership.
  • Most of the funding will be concessional loans targeting climate and energy, sustainable urban development, green mobility, and sustainable management of natural resources.
  • Bilateral cooperation will also broaden skills training, with emphasis on developing India’s renewable-energy workforce.
  • Cited examples of ongoing cooperation include Bengaluru’s Yellow Line metro backed by a €340 million KfW loan with an estimated 25,000 jobs, a city Living Lab, and rooftop solar EV charging scaled to Surat.
  • German officials described the GSDP as a unique, equal collaboration, with BMZ leadership visiting Bengaluru to review flagship mobility initiatives.