Germany Pledges €1.3 Bn to India for Sustainable Development, Urban Mobility & Renewable Energy Cooperation

Germany pledged approximately €1.3 billion to India on December 8, mostly in the form of concessional loans, in the crucial areas of energy and climate change, green urban mobility, sustainable urban development and sustainable resource management.

Citing an official statement, ANI reported that these loans will also strengthen bilateral cooperation in the field of skills development, specifically in renewable energy.

Germany and India concluded the India Germany Government Negotiations on Development Cooperation 2025, reaffirming their strong and future-oriented partnership under the Green and Sustainable Development Partnership (GSDP).

“During the negotiations, Germany announced new commitments amounting to almost €1.3bn, primarily in the form of concessional loans, across the key areas of climate and energy, sustainable urban development, green urban mobility and sustainable management of natural resources. In addition, bilateral cooperation in the skills development sector, in particular, renewable energy will be strengthened,” the statement read.

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) told ANI that India remains a major strategic partner country, also under the new German government.

“I am delighted to continue our trustful development cooperation-under the umbrella of GSDP, guiding our commitment to the bilateral cooperation. With the projects committed today, Germany and India jointly follow the path to sustainable prosperity and overcome global challenges,” Christine Toetzke added.

Emphasising about the unique nature of the GSDP cooperation between the two countries, Philipp Ackermann, German Ambassador to India told ANI, “Our negotiations under the Green and Sustainable Development Partnership are serious in purpose but deeply rewarding, because they take place with partners we know well and value greatly. 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. I am very pleased that we were able to conclude the negotiations efficiently, and I look forward to the important work we will take forward together in the coming year.”

Ahead of the negotiations, Toetzke travelled to Bengaluru to gain first-hand insights in to the ‘Indo-German Green Urban Mobility Partnership for All’.

Driving Sustainable Urban Growth

Germany’s commitment builds on a broader, long‑standing track record of cooperation under the Indo-German Green Urban Mobility Partnership for All (GUMP), which aims to support low‑carbon, accessible transport networks — from metros and e‑buses to pedestrian and cycling infrastructure — benefiting millions while advancing climate, equity and urban‑resilience goals.

According to Federal Ministry for Economic Cooperation and Development, around 126mn people are benefiting from Germany’s efforts to contribute to improved municipal management, and 36mn people are now better shielded against the consequences of climate change.