Prime Minister Tony Abbott will personally return to his counterpart Narendra Modi two revered Indian statues sold to Australian museums in murky circumstances.
Mr Abbott will make the symbolic gesture to India on Friday before formal talks with the Indian prime minister in New Delhi.
One of the ancient Shiva statues - estimated to be 900 years old - was bought by the National Gallery of Australia for more than $5 million in 2008 from a disgraced art dealer.
The other stone statue, also of Shiva, was bought by the Art Gallery of NSW.
The Indian government had formally requested the artefacts be returned to their homeland.
Mr Abbott will also present Mr Modi with framed pictures of Australian and Indian troops serving side by side at ANZAC Cove at Gallipoli.
More than one million Indian soldiers served during World War I for the British Empire in Europe and the Middle East.
Mr Abbott laid a wreath at India's national war memorial on Friday.
Earlier in the day, he was welcomed to India by a full military procession at the presidential palace.
He will later visit a trauma centre to announce new funding for medical research co-operation between Australian and Indian scientists.
Aside from the statues, Mr Abbott will present Mr Modi with a jacket and a traditional kurta, or tunic, made from Australian wool, and a shawl for his mother.
India is Australia's second-largest market for wool.
The two prime ministers are expected to announce a major deal allowing Australia to sell uranium to India later in the day.
