German Chancellor Angela Merkel and Indian Prime Minister Narendra Modi held bilateral talks in New Delhi on Monday.

Merkel is on a two-day state visit to India. It is the German Chancellor's first visit to India after Modi stormed to power in May 2014.

A joint statement issued after Merkel-Modi meeting said that both leaders have agreed to renew talks on India- European Union free trade agreement.

"They...underlined their sustained commitment to a comprehensive trade and investment agreement between the EU and India, and committed themselves to bringing about the earliest possible resumption of talks," the joint statement said, according to Reuters.

Indian Prime Minister Narendra Modi, in a joint press conference, said that India is keen to develop stronger economic ties with Germany.

"Our focus tends to be on economic ties. But, I believe that in a world of seamless challenges and opportunities, India and Germany can also be strong partners in advancing a more human, peaceful, just and sustainable future for the world," he told reporters, according to an official media release.

Modi also said India and Germany were committed to pursue United Nations Security Council reforms.

India and Germany signed 18 memorandums of understanding (MoUs) after holding bilateral talks. Germany also announced a package of more than a billion Euros for solar projects in India.

Both sides agreed on partnership in skill development, railways, manufacturing, river cleaning, aviation security, higher education, disaster management and agricultural studies, according to The Hindu.

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