After signing the agreement with PM Modi in May 2022, German Chancellor Olaf Scholz announced a 10-billion-euro support package for India by 2030. This offer includes an investment of one billion euros for initiatives in India. The cash, which provides for 10% grants and 90% in the form of lines of credit, will help India’s efforts in renewable energy, innovative city development, and natural resource sustainability. The two parties agreed to fund more than 20 development initiatives over the next eight years.
KFW Development Bank will provide lines of credit with relatively low-interest rates ranging from 2.75% to 3.25% for development projects across the country. Based on individual capabilities and experiences in development cooperation, both parties agreed to collaborate on triangular cooperation to offer sustainable, viable, and inclusive initiatives in third countries to promote the accomplishment of sustainable development goals and climate targets.
Considering their complementary positions, India and Germany decided to form a green hydrogen task force. The two countries expressed their “strong support” for the European Union and India’s negotiations on a Free Trade Agreement, an Investment Protection Agreement, and a Geographical Indications Agreement, emphasizing the enormous potential of such agreements for expanding bilateral trade and investment.
