Khurshid, the first senior Indian leader to visit the oil-rich Arab country in last 23 years, will meet his Iraqi counterpart Hoshiyar Zebari and discuss bilateral, regional and international issues of mutual interest.
Khurshid is expected to discuss the issue of import of oil from Iraq, which has emerged as India's second largest crude oil supplier, replacing sanctions hit Iran.
In recent years, India's import of oil from Iraq has seen a significant rise. Iraq has the world's third largest proven oil reserves.
But India has reduced its dependence on Iranian oil in the
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wake of US and EU sanctions on the import of oil from the Islamic Republic.
India imported about 13.3 million tonnes of crude oil from Iran in 2012-13 fiscal, down from 18.1 million tonnes shipped in the previous financial year.
Early this month, the United States exempted India and eight other countries from financial sanctions for six-month for significantly reducing their dependence on Iranian oil.
Khurshid is also expected to call on Prime Minister Nouri Al-Maliki, and Chairman of Council of Representatives and Deputy Prime Minister of Iraq.
This forthcoming visit is expected to add an impetus to our bilateral relations and elevate our ties to a higher level for the mutual benefit the people of India and Iraq, the statement added.
Former External Affairs Minister I K Gujral, who later became the Prime Minister, had visited Iraq in 1990 in connection with the evacuation of Indians in the wake of Gulf war.