I think she needs one
I agree.
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If she does not have a valid Visa Stamp in the passport, she needs to get transit visa. I am in the same boat and I plan to get one. Below is some text from their web site.
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Visa needed?
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Entry clearance requirements are dependent on the citizenship and the resident status of the applicant. Due to its location at the heart of Europe, Germany is an important transit country. The vast majority of travellers do not need a visa when airtransitting through Germany. However, citizens of some countries do need an airport transit visa.
Please note that an airport transit visa only allows a short stay in the international transit area, neither leaving the airport's international transit area nor overnight stays are possible.
List of countries whose citizens do need a airport transit visa
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India (please see exception 4)
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Exemption 4 to the list above
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the exemptions under no. 1.) apply. In addition, please note:
Indian and Turkish airport transit travelers who
- are holding a valid visa or other residence permit for the USA (an approval notice is not sufficient), Canada or Switzerland and travel to the country which issued that visa or residence permit
OR
- after a legal stay in the USA, Canada or Switzerland- return to the country whose citizenship they hold
do not need an airport transit visa.
If you are still in doubt whether you need an airport transit visa, do not hesitate to call the German mission which serves your place of residence in the US.
Although this information has been prepared with utmost care, the we can not accept any responsibility for inaccuracies contained herein.