PM Modi and Ms Merkel will also participate at an ICT event in a star hotel, where they will interact with who's who of the IT industry, including Infosys co-founder NR Narayan Murthy and Wipro czar Azim Premji and German software major SAP India executives.

"A large visiting German delegation, including ministers and business heads, will be present on the occasion to exchange views on entrepreneurship and start-ups to fuel our ICT products and services for domestic and global markets," a top Nasscom official told IANS.

Organised by the National Association of Software and Services Companies (Nasscom), the apex organisation of IT firms in India, and the German Fraunhofer Institute, the luncheon meeting is a fallow-up of PM Modi's participation at a similar event on start-ups during his visit to the Silicon Valley at San Jose in California, US, on September 27.

"Modi has addressed at the 'India-US Start-Up Konnect 2015' event we organised in partnership with The Indus Entrepreneurs (TiE) to showcase the strength of our start-up ecosystem, which attracted $2-billion venture funds in 2014," the official added.

According to German Ambassador Martin Ney, both the leaders will focus on business ties between the two countries in the city.

"Merkel will meet with representatives of German firms present in the city, employing hundreds of young Indians and contributing to 'Make in India' as well as 'Digital India'," Ney told reporters in New Delhi on October 3.

The meeting between Modi and Merkel comes days after they met in New York on September 26 at a high-powered summit of India, Brazil, Germany and Japan (G-4 group), which the Indian prime minister hosted, as all the four countries are bidding for a permanent seat in the United Nation's restructured Security Council.