They are looking to open up investment opportunities for UK firms in India’s defence and infrastructure sector, and attract Indian investment into Britain reports BBC.
The visit comes as a new government led by Narendra Modi has taken charge in India – Asia’s third-largest economy.
Mr Modi is widely expected to announce new reforms to boost economic growth.
“I believe a stronger relationship with Britain will help deliver the new economic policy of the Indian government,” Mr Osborne will say in a speech during the visit, according to advance extracts released by Britain’s Foreign Office.
“Prime Minister Modi is seeking more investment in India’s economy – and I want British companies to provide it, and the British government to support it.”
Meanwhile, Mr Osborne is expected to announce that Indian pharmaceutical company Cipla is to invest up to £100m in the UK.
India’s economy has struggled in recent years with rising price pressures and problems with bureaucracy and corruption.
That has hurt the confidence of foreign investors looking to enter the country.
However, a landslide win for the Mr Modi-led Bharatiya Janata Party (BJP) in the recent general elections has sparked hopes of a revival in India’s economy.
Both foreign and local investors have been hoping that Mr Modi will introduce fresh reforms and boost investment in key sectors to help spur growth.