The Indian Defence Minister AK Anthony announced on Tuesday that joint military exercises with China will resume after a four year gap, after meeting with his Chinese counterpart General Liang Guanglie in Delhi.
"We have decided that (to restart military exercises)," Mr Anthony told reporters.
"We covered a lot about the situation in the South Asia, Asia-Pacific region," Antony said.
"We had a very frank and heart-to-heart discussion on all the issues... including in the border areas."
The neighbours also agreed to strengthen border security cooperation between the two countries’ forces.
"We have reached a consensus on high-level visits and exchange of personnel, maritime security... and cooperation between the two navies," Liang said after Tuesday's talks.
"I had candid and practical discussion with the defence minister," he added.
A Defence Ministry statement said that, “they also decided to promote exchange visits by personnel at different levels and in various fields."
"The two countries will strengthen exchanges in personnel training, academic research and cooperation between educational institutions of the Armed Forces of both sides,” it said.
General Liang was in Sri Lanka before visiting Delhi, where he downplayed fears of China’s supposed hostile intentions in the region.