We report an investigation on the observation of ultrahigh photoresponse (photogain, 𝐺 𝑃𝑐 >10 6 ) in single nanowire photodetectors of diameter < 100 nm. The investigation which is a combination of experimental observations and a theoretical analysis of the ultrahigh optical response of semiconductor nanowires, has been carried out with emphasis on Ge nanowires. Semiconductor nanowire photodetectors show a signature of photogating where 𝐺 𝑃𝑐 rolls-off with increasing illumination intensity. We show that surface band bending due to depleted surface layers in nanowires induces a strong radial field (~ 10 8 V/m at the nanowire surface) which causes physical separation of photogenerated electron-hole pairs. This was established quantitatively through a self-consistent theoretical model based on coupled Schrodinger and Poisson Equations. It shows that carrier separation slows down the surface recombination velocity to a low value (< 1 cm/s) thus reducing the carrier recombination rate and extending the recombination lifetime by few orders of magnitude. An important outcome of the model is the prediction of 𝐺 𝑃𝑐 ~ 10 6 in a single Ge nanowire (with diameter 60 nm), which matches well with our experimental observation. The model also shows an inverse dependence of 𝐺 𝑃𝑐 on the diameter that has been observed experimentally. Though carried out in context of Ge nanowires, the physical model developed has general applicability in other semiconductor nanowires as well.