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