The German government-owned development bank, has churned its strategy. It is phasing out its commitments for the support of the financial sector in and shifting its priorities to sustainable development.

Over the last ten years, had three focus sectors in India: energy, environment and natural resources, and financial systems or sustainable economic development. Last year, there was a shift in focus areas, which will result in an increasing role of sustainable development within Indo-German bilateral development cooperation, according to a senior official at  This is in keeping with Prime Minister Narendra Modi's focus on development under the 


In the development vertical, which is a new focus area for KfW, the commitment so far has been about 700 million euros, made almost exclusively in the past two years.

Under the sustainable development, is working on developing climate-friendly transport projects and sustainable infrastructure. The three partner cities of Germany under the are Kochi, Bhubaneswar and Coimbatore.