The Indian Institute of Technology Madras (IIT) was set up with assistance of the Federal Republic of Germany between 1956 and 1974. It became the largest, and finally, a successful techno-scientific education project undertaken by the Federal Republic outside of Germany. In this paper, I argue that the engagement of the Federal Republic at IIT Madras has to be understood primarily as a project of Cold-War science and technology diplomacy, which on the German side was aimed at preventing an Indian recognition of the German Democratic Republic as a sovereign nation. In aiding the establishment of IIT Madras, the Federal Republic came into direct competition with the Soviet Union, which supported IIT Bombay but also with the United States of America, which supported IIT Kanpur. The assistance to establish IIT Madras and its governance followed mainly political guidelines, to which educational and scientific aspects were rendered subordinate. When the project was in a crisis after the first State Treaty to establish IIT Madras expired in 1963, the political flagship project of the Federal Republic was not allowed to fail. Instead, the cooperation was reorganized and support increased. © 2020 Wiley-VCH GmbH