The two countries also agreed that India's participation as partner country at the Hannover Messe fair has created a positive momentum for business, said a joint statement here on Monday.
They agreed to work towards scheduling the next meeting of the Indo-German Joint Commission in India in 2016 to identify new areas for practical business cooperation.
Germany also welcomed India's intensified engagement with the various export control regimes -- the Nuclear Suppliers Group (NSG), the Missile Technology Control Regime (MTCR), Australia Group and the Wassenaar Arrangement.
Both sides agreed to continue to work together for India's accession to the regimes as a full member and thereby strengthen global non-proliferation efforts.
Both leaders reaffirmed the urgent need for comprehensive reform of the UN Security Council, especially its expansion in both permanent and non-permanent categories, to make it more representative, effective and responsive to the geo-political realities of the 21st century.
Both committed themselves to an early reform of the Security Council.
Both sides stressed the outcome of the meeting of the G4 in New York on September 26, and agreed to intensify efforts to realise concrete results in the 70th anniversary year of the United Nations.
They also reiterated their full support for each other's candidatures for a permanent seat in a reformed UN Security Council.
Recognising Germany's key competencies in high technology and India's growing needs, both leaders reaffirmed that technology intensive manufacturing can become a key pillar of their strategic partnership.
Both decided to identify opportunities for high technology collaboration, including in priority areas of manufacturing under the 'Make in India' programme, in particular defence manufacturing, through regular meetings.
Both leaders believe that India's railway modernisation and expansion plans open up commercial opportunities for German companies in high speed rail, station re-development, rolling stock manufacturing, logistics terminals and urged the private sector to explore early participation in this sector.
Training managers, supervisors and instructors from Indian Railways is another potential area of collaboration.
Both sides welcomed the intense cooperation underway in the automotive sector.
They encouraged their business enterprises to enter into arrangements for co-development and co-production of commercial aviation and defence equipment in India, including transfer of know-how and technologies.
Both sides took positive note of the resumption of negotiations for amending the existing Double Taxation Avoidance Agreement including the Article on Exchange of Information to enhance the elimination of double taxation and to foster financial transparency.
Both agreed to enhance collaboration towards the common aim of developing climate-friendly, efficient and sustainable solutions for India's expanding energy needs.
Modi expressed appreciation for Germany's assistance in developmental projects over the years, including the new German commitment of 1.490 billion euro.
The leaders expressed satisfaction at the successful implementation of the "Green Energy Corridors" Project, which has been expanded by 400 million euro.
Both sides agreed to improve access to clean energy in rural locations.
In this context, India welcomed Germany's readiness to assist in meeting its renewable energy target under the umbrella of the Solar Partnership with 1 billion euro over the next five years.
Modi welcomed Germany's intention to initially commit 120 million euro for a project in the upper Ganga river basin for improvement of the environmental situation in selected cities in the Ganga river basin.
Both leaders welcomed the agreement on teaching of the German language as an additional foreign language in Kendriya Vidyalayas in conformity with the National Education Policy of India as well as the facilitation of teaching of modern Indian languages in German educational institutions, the joint statement said.
With regard to visas, both sides agreed to initiate discussions on simplifying respective visa procedures and making them as easy and transparent as possible, especially for business persons, entrepreneurs and investors, professionals and students, journalists and members of non-governmental organisations, who contribute substantially to the development of bilateral ties.