She also met German Foreign Minister Frank-Walter Steinmeier.
Ministry spokesperson Vikas Swarup tweeted: "A personal warmth. Sushma Swaraj calls on Chancellor Angela Merkel, welcomes her before delegation level talks."
"Preparing the ground. External Affairs Minister Sushma Swaraj and (German) Foreign Minister Steinmeier have an early morning meeting to begin engagements."
Earlier in the day, Merkel was accorded a ceremonial welcome at Rashtrapati Bhavan.
Merkel is on an India visit October 4-6. She is accompanied by a large delegation comprising cabinet ministers and businesspersons.