The Indian economy has moved to a higher growth trajectory since mid-1990’s. As a consequence, there has been some reduction in poverty levels and improvement in certain human development indicators. However, there is still a long way to go, as the incidence of poverty remains high due to growth imbalances.
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).