During the meeting here, Steinmeier conveyed Germany's strong desire to work with the new government in India to further expand and deepen bilateral relations.
Modi lauded Germany's remarkable economic resurgence over the past decade, a PMO statement said.
He said India and Germany, which are bound by democratic values, are "made for each other" because of complementary skills and resources to power the next generation of industrial development through partnering in manufacturing and infrastructure development, it said.
Modi also pressed for taking forward the ongoing cooperation in the area of clean energy and forging new partnerships in the areas of solid waste management, waste water treatment and cleaning of rivers, the statement said.
It was agreed that both sides will undertake preparations with the aim of finalizing concrete roadmap for cooperation in each of these areas at the next Inter-Governmental Consultations meeting.
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