The Government of Germany has been providing bilateral development assistance for India’s economic development since 1958. The Federal Republic of Germany (FRG) provides both Financial and Technical Assistance to India under the Indo-German Bilateral Development Cooperation Programme. Financial bilateral development assistance is provided as soft loan, grants and commercial credit. The Indo-German Bilateral Development Cooperation is broadly in the following areas:
Ø health, family planning, HIV/AIDS,
Ø environment policy, protection and sustainable utilization of natural resources,
Ø strengthening the economic sector, especially the private sector potential,
The States of Madhya Pradesh, Himachal Pradesh, Karnataka, Maharashtra, Rajasthan, West Bengal and Orissa are the regional priorities of Indo-German Cooperation. However, this concept of regional priorities is linked only to the State Sector Projects and not to Central Sector Projects. Germans have also indicated their readiness to render support to the development of North Eastern and newly created States consistent with their comparative advantages.