Germany India Sign Pacts For Technical Financial Co-operation

10 Feb 2014

On 5^th February 2014, two umbrella agreements for technical and financial co-operation were signed by Germany and India under the framework of Indo-German Bilateral Development Co-operation. During their bilateral meeting between Germany and India, the German Federal Minister for Economic Cooperation and Development, Gerd Mueller, and the Union Finance Minister of India, P Chidambaram, signed the pacts.

The President of Federal Republic of Germany, Joachim Gauck, was on a 6 day State Visit to India from 4^th to 9^th February 2014, and these agreements were signed during that official visit. A high level delegation of Business leaders, Members of Parliament and Ministers accompanied President Joachim Gauck in this visit.

The Financial co-operation under the Umbrella Agreement applies to the concessional loans provided by the German Government for 9 projects, namely

·         Affordable Housing Programme (NHB)

·         Energy Efficiency in Thermal Power Plants (WBPDCL)

·         Green Energy Corridors

·         Himachal Pradesh Forest Ecosystems Climate Proofing Project

·         Himalaya Hydropower Programme (HPPCL)

·         Madhya Pradesh Urban Sanitation and Environment Programme

·         Missing Middle Programme (SIDBI)

·         New Approaches in Microfinance and Microenterprise Finance (SIDBI)

·         Promotional Programme for Energy Efficient New Residential Housing-II (NHB)

The Technical co-operation under the Umbrella Agreement applies to 13 projects in Sustainable economic development, Energy and Environment sectors. Under the bilateral development cooperation between Germany and India, these are priority sectors.

Also, the constructive engagement between Germany and India under development cooperation framework was appreciated by both countries. A commitment of funds amounting to 1.09 billion Euros was given by the German Government which is the ever largest ever amount committed since 1958.

Relations between Germany and India

Germany and India have a close and cordial relation and have been strategic partners since 2000. With the initiation of the Inter-Governmental Consultations in 2011, through regular high-level transactions at the Head of Government level, considerable progress has been seen in all areas of bilateral cooperation between Germany and India. Exchanges between both countries in cooperation of growing commercial and economic ties and strategic areas and more interaction in the fields of people-to-people and culture relations, science and technology, and education is also seen.

Currently, the highest trading European partner for India is Germany and the two countries also work together closely in the global arena.