The dawn of the twenty-first century coincided with an unusual phenomenon in international relations: the emergence of China and India as global powers. The steadily rising rate of economic growth in India has recently been around 8 per cent per year, and there is much speculation about whether and when India may catch up with and even surpass China’s over 10 per cent growth rate. India and China understand the concept of co-existence and growth very well. This engagement has elements of both rivalry and cooperation.