Indian alert to growing military might of China: Rao

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India remains alert to the growing military might of China, even as New Delhi has sought to strengthen its bilateral dialogue with Beijing over the last two decades, a top Indian diplomat based here has said.

"China is our largest neighbour and its rise is a reality that entire world faces today," the Indian Ambassador to the US, Nirupama Rao, said in her remarks at the University of California-Berkeley on Monday.

"I am often asked whether our relationship with China will be one dominated by increasing competition for influence or for resources.

"I would not like to characterise our relations in such stark terms," Rao said according to the transcripts of the speech release by the Indian embassy on Tuesday.

"Over the last two decades we have sought to deepen our dialogue and strengthen bilateral relations.

"Today China is our largest trading partner in goods.

"Peace and tranquility have prevailed in the India-China border areas," she said.

"At the same time we do remain alert to the fact that China's growing ability to project its military strength, its rapid military modernisation, and its visible and growing reach introduces a new calculus in the security situation in our region," Rao said.

"The challenge therefore, is to manage the India-China relationship despite inherent complexities and challenges, embedding it in the matrix of dialogue and diplomacy," said the Indian ambassador.