Dai was visiting India at the invitation of Menon, Hong Lei, Chinese foreign ministry spokesperson said at the regular press briefing on Monday.
Dai's India visit comes days before defence secretary, Shashi Kant Sharma's visit to Beijing towards the middle of the month.
Sharma's visit is likely to boost defence relations between the two countries and could open up the possibility of a joint exercise later this year.
Dai Bingguo's visit, possibly his last official visit to India, is also a precursor to the BRICS summit in Durban in March.
It is expected that Prime Minister Manmohan Singh will meet Communist Party of China general secretary, Xi Jinping, who by then would have assumed the country's Presidency as well.
Singh is expected to meet Xi Jinping on the sidelines of the fifth BRICS summit in Durban from March 26 to 27.