Trade and investment as well as cooperation in science, energy and counter-terrorism are expected to top the agenda for Modi’s talks with Merkel on Tuesday.
The leaders are scheduled to chair talks on boosting ties and witness the signing of a clutch of pacts, Indian diplomats said.
In a message on his website, Modi said the visit would “open a new chapter” in the India-Germany strategic partnership.
Modi and Merkel, who are due to participate in a joint business summit, are also likely to discuss an India-European Union free trade pact, negotiations on which came to a standstill in 2013.
Germany is the largest trading partner for India in the EU, with bilateral trade valued at nearly 20 billion dollars.
After his stop in Berlin, Modi is to visit Spain, Russia and France.