Germany Extends €1.3 Bn Concessional Loans to India for Climate & Green Urban Projects

Germany has committed to extending around EUR 1.3 billion through concessional loans at the recent Indo-German Partnership for Green and Sustainable Development (GSDP). These loans are being extended for development across climate and energy, sustainable urban development, green urban mobility, and the sustainable management of natural resources.

The Indo-German Partnership for Green and Sustainable Development (GSDP), launched in 2022, continues to expand its scope. During the latest round of negotiations, Germany’s commitments were made primarily in the form of concessional loans across key areas such as climate and energy, sustainable urban development, green urban mobility, and the sustainable management of natural resources. Additionally, both countries agreed to strengthen bilateral cooperation in the skills development sector, particularly in renewable energy.

This commitment was formalised during the India–Germany Government Negotiations on Development Cooperation 2025. The collaboration reaffirms their strong and future-oriented partnership under the GSDP framework.

Outcomes of the Negotiations

At the close of the negotiations, India and Germany agreed on a substantive portfolio of new development cooperation projects across all core areas of the GSDP.

Supporting the green investment agenda, Philipp Ackermann, German Ambassador to India and Bhutan, emphasised the unique nature of the GSDP partnership between the two countries. He said, “Germany has no partnership quite like the GSDP with any other country (apart from India); its scale, its ambition, and its spirit of equal collaboration make it truly unique. It is not traditional development cooperation; it is two mature nations working together to find solutions to the most pressing challenges of our time.”

Focus on Green Urban Mobility and Innovation

Here are some of the key areas of cooperation agreed upon by both parties:

Indo-German Green Urban Mobility Partnership

Ahead of the negotiations, Christine Toetzke, Director General for Asia, Latin America, Middle East, Eastern/South Eastern Europe at the German Federal Ministry for Economic Cooperation and Development (BMZ), travelled to Bangalore to gain first-hand insights into the Indo-German Green Urban Mobility Partnership for All.

Her programme in Bangalore showcased India’s pioneering mobility landscape—from large-scale public transport projects to cutting-edge digital and accessibility innovations. The initiative is a flagship programme under the GSDP aimed at advancing low-carbon, people-centric, safe, accessible and affordable mobility solutions.

Germany supports India’s ambitious targets in green mobility, covering electrification, last-mile connectivity, public transport modernisation, barrier-free design, digital innovation and inclusion. German companies continue to play a strong role by offering high-quality technological solutions in key mobility and infrastructure segments.

Companies Benefitting From the Collaboration

A notable example of ongoing Indo-German cooperation is the recently inaugurated projects:

• Yellow Line Metro segment in Bangalore: The project is supported by a EUR 340 million KfW loan. The project not only strengthens sustainable urban transport and reduces emissions, but has also contributed to the creation of an estimated 25,000 jobs, with German companies such as Siemens, Knorr-Bremse, Hübner and Voith involved in essential deliveries and services.

• The Living Lab in Bangalore: The project is powered by a partnership between government, industry, academia, civil society and companies such as Bosch and Nunam, demonstrating how Indo-German cooperation is driving climate-smart innovation. India’s first rooftop solar-powered EV charging station with second-life batteries, developed by Nunam, has already been scaled from Bangalore to Surat to support the city’s public e-bus fleet.