NEW DELHI - India Thursday said the rapid enhancement in the defence capabilities of China as well as its hobnobbing with Pakistan and other countries in South Asia have military implications for India.

Releasing its annual defence report, India said that it was carefully monitoring China’s defence modernisation.

It’s (China’s) military assistance and cooperation with Pakistan and other countries in our neighbourhood as well as the possibilities of enhancing connectivity with Pakistan through the territory of Jammu and Kashmir, illegally occupied by China and Pakistan, and with other countries, will also have direct military implication for India, the report said.

Consequently, China’s defence modernisation needs to be monitored carefully in the foreseeable future for the implications that it can have on the security defence of India, it added.

The two neighbours fought a brief but bloody war in 1962.

India has also taken note of double digit growth in China’s defence expenditure over the previous 20 years, which has led to significant modernisation of its defence forces both in terms of quality and quantity,” the report said.

China’s stated objectives in their white paper of developing strategic missiles and space based assets and of rapidly enhancing its blue water navy to conduct operations in distant water as well as the systematic upgrading of infrastructure, reconnaissance and surveillance, quick response and operational capabilities in border areas will have an affect on overall military environment in the neighbourhood of India, said the report.

In recent times there have been efforts to give a new impetus to India-China bilateral relations, including military ties. Indian Navy chief Admiral Sureesh Mehta paid a maiden visit to China earlier this year. The Indian Navy also participated in Beijing’s international fleet review.

This was preceded by the visit of the Indian Air Force chief to China and the maiden performance by the Surya Kiran Aerobatic Team (SKAT) in China.

On future relations with China, the report said: India will engage China to seek greater transparency and openness in its defence policy and posture while taking all necessary measures to protect the national security, territory, territorial integrity and sovereignty of India.