Development co-operation is an important concern of the German Federal Government. The German Federal Ministry for Economic Co-operation and Development (BMZ) is responsible for technical and financial cooperation. The goal of technical co-operation is to enhance the capabilities of people and institutions in partner countries. Technical co-operation focuses on the transfer of knowledge and skills as well as improving the conditions for their use. It strengthens the individual initiative of people so that they can enhance their living conditions through their own efforts. Major implementing agency for German technical co-operation is GTZ, founded in 1975. It is a government-owned corporation operating throughout the world. The aim is to positively contribute to the political, economic, ecological and social development in partner countries. Through the services it provides, GTZ supports complex development and reform processes and paves the way towards sustainable development. The organization has more than 10,000 employees in 130 countries. GTZ maintains its own field offices in 63 countries. Some 1,000 people are employed at the head office in Eschborn near Frankfurt. Initially GTZ has provided machinery and equipment as well as technical and managerial know-how to operate the four Indo-German Tool Rooms. These services were co-ordinated by the GTZ-IGTRP Office in Delhi. The unique setup of the tool rooms with production and training centers operating on a modern cost recovery concept ensures sustainability of the tool rooms in the long run. Thus, the tool rooms contribute to industrial development and social progress in India.