The German leader is on his third visit to India since 2023, bringing several Cabinet ministers for discussions between the leaders of the world's third- and fifth-largest economies.
His administration agreed to increase the number of visas granted annually to skilled Indian workers to 90,000, up from 20,000.
"The message is that Germany is open for skilled workers," Mr Scholz said.
Mr Modi hailed the agreement as an economic boon to both countries.
"When India's dynamics and Germany's precision meet, when Germany's engineering and India's innovation meet... a better future is decided for the Indo-Pacific and the entire world," he said.
India and Germany first signed a migration agreement two years ago to facilitate the mobility of professionals and students.
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