Development Cooperation

Germany supports India’s reform policies geared towards inclusive, regionally and socially balanced growth. As concrete steps in this direction Germany, in collaboration with Indian partner institutions, is actively supporting development and strengthening of financial systems in rural areas, social policy instruments especially for the unorganised sector, and promotion of small and medium-sized enterprises as well as microfinance institutions.

In this framework, the German development cooperation is actively supporting the reform of rural cooperative banks implemented by the National Bank for Agriculture and Rural Development (NABARD). It is also providing support for many aspects of promotion of small and medium enterprises (SMEs) in collaboration with the Small Industries Development Bank of India (SIDBI). 

The cooperation projects are carried out on behalf of the German Federal Ministry for Economic Cooperation and Development as well as the German Federal Ministry for the Environment, Nature Conservation and Nuclear Safety - each with the concurrence of the German Foreign Office - by Germany's International Cooperation Agency GIZ, the National Metrology Institute of Germany (PTB) and the German Development Bank KfW. GIZ and PTB are charged with implementation of technical cooperation and KfW with implementation of financial cooperation projects respectively.

Projects:

Rural Financial Institutions Programme

Rural Finance Programme supports the development of an inclusive financial system Enlarge image (© GIZ) Under Indo-German development cooperation, the Rural Finance Programme supports the development of an inclusive financial system, enabling more and more rural households to avail quality financial services.

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Indo-German Corporate Social Responsibility Initiative

Corporate Social Responsibility Enlarge image (© GIZ) To develop and broaden consensus at the policy level about CSR in the Indian context, the Indo-German Corporate Social Responsibility Initiative project is helping establish a multi-stakeholder dialogue process at the Indian Institute of Corporate Affairs (IICA), a think-tank of the Indian Ministry of Corporate Affairs.

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Umbrella Programme for the Promotion of Micro, Small and Medium Enterprises (MSME)

Promotion of Micro, Small and Medium Enterprises Enlarge image (© dpa - Report) The programme assists MSME to modernise and increase their competitiveness, while at the same time considering resource efficiency, cleaner production and meeting social and environmental standards. It helps to improve the business and investment climate for MSME on three levels: 1) by improving the implementation of policies and programmes of the Ministry of MSME; 2) by granting better access to market-oriented financial and non-financial services; and 3) by promoting innovation.

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Regional Economic Development Uttarakhand

Regional Economic Development Uttarakhand Enlarge image (© picture alliance / DINODIA PHOTO LIBRARY) The Regional Economic Development programme is based with the Uttarakhand Government's Department of Rural Development, where it is helping the state to bridge the existing economic divide. It combines activities designed to promote social equity, inclusive growth and poverty reduction, with uses of the rich natural resource base that ensure ecological stability. The programme aims to make markets work for the poor, stimulating market forces where possible to enable economic participation. It relies on dialogue amongst key actors and on partnerships between public, private and civil society organisations.

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Indo-German Social Security Programme

Indo-German Social Security Programme Enlarge image (© GIZ) The Indo-German Social Security Programme (IGSSP) provides technical advice to the Indian Ministry of Labour and Employment for the implementation of the Unorganised Sector Workers’ Social Security Act, and to help improve the social security system for workers in the unorganised sector and their families.

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Social Security Project in Karnataka

Social Security Project (© picture alliance / DINODIA PHOTO LIBRARY) The project is working to develop appropriate social security products for the unorganised sector establish efficient and effective delivery structures for the social security system and improve the capacity of all the actors involved in the programme to implement the social security system (including planning and delivery of the social security benefits). The living standards of unorganised workers through the new social security products shall be improved and a reliable impact monitoring system to supply regularly updated information on the reform programme shall be provided.

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Promotion of medium and small enterprises

Promotion of medium and small enterprises Enlarge image (© GIZ) In India, availability of finance for India’s micro, small and medium enterprises (MSME) gravely fall behind the actual need and demand – with direct implications on employment and income for a large part of the population as well as for the productivity of the Indian economy as a whole. Within the framework of Indo-German Development Cooperation, this gap is being addressed by way of cooperation with SIDBI, the Small Industries Development Bank of India. Through a series of programmes dating back to the 1990s, KfW – as Germany’s leading promotional bank for small and medium enterprises (SME) - has shared its standards and experiences in promoting SME with SIDBI, thus contributing to the mitigation of existing market failures in India.

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Promotion of Microfinance

Indo-German Financial Cooperation Enlarge image (© GIZ) Microfinance fosters the financial inclusion of those layers of society who have no or only insufficient access to basic financial services. Facilitating this access brings about many positive effects: assets are built up, consumption patterns are smoothened and income levels are increased. Eventually, vulnerability of people most exposed to economic stress is being reduced. In acknowledgement of these potential effects of microfinance and the prevailing challenges in the industry, the Indo-German Financial Cooperation is promoting the sector via a number of approaches and a diverse range of partners.

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Development Cooperation

Germany supports India’s reform policies