Japanese Prime Minister Shinzo Abe and visiting Indian Prime Minister Manmohan Singh reached agreement here Friday that the two countries will start talks on a bilateral free trade agreement from early next year.

The two countries will make joint efforts to conclude the FTA talks within two years, Abe said at a joint press conference, adding that an economically stronger India will be in Japan's interests.

Abe also agreed with the Indian premier to build a strategic partnership between the two countries, Kyodo News said.

Singh, who commenced his four-day visit from Wednesday, described his meeting with Abe as "a very cordial, fruitful and extensive exchange of views."

According to a joint statement, the two leaders agreed to hold annual summits through reciprocal visits, to hold strategic dialogue at foreign ministerial level and policy dialogue between the two nations' national security advisors.