Indian iphone cannot be used in Germany

I purchased IPhone in India through retail mobile store and I was using airtel postpaid in India.
Now I am in Germany for business trip and I cannot use Lyca mobiles sim because it is asking for activation. When i enquired the same in the mobile shop they said my phone needs to be unlocked. Does purchasing Iphone in India needs unlocking???? I have spent 53000 and still it needs unlocking???
I tried many sources in internet and cannot find a solution to this. Will erasing the iphone fully will help ?????? Can someone provide clear steps on doing such things??

Thanks for your reply!!
Is there anyother way to use the Lyca sim ?? And to add my phone is retail one which means it is already unlocked..

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