New Delhi, April 11, IRNA -- Noting that China has upgraded its military force projection through rapid modernisation, India’s Defence Ministry said the country was 'conscious and watchful' of Beijing's rising military profile in the immediate and extended neighbourhood.

Chinese footprints in India's neighbourhood are increasing progressively due to its proactive diplomacy through political, military and economic engagements.

'Rapid infrastructure development in Tibet and Xinjiang has considerably upgraded China's military force projection against India and improved their overall strategic and operational flexibility,' pti reported quoting the Ministry as said in its annual report for 2011-12 released Monday.

The report said 'India remains conscious and watchful of the implications of China's profile in the immediate and extended neighbourhood.'

The report said the Army is 'fully seized' of the security scenario and has 'identified' strategically important infrastructure requirements along the Line of Actual Control (LAC) and they are being developed in a phased manner.

The report said India has been desirous of cordial relations with China and 'to this end, a policy of positive engagement and maintaining peace and tranquillity along the LAC is ensured'.

On the Pakistan front, the report said that a prosperous Pakistan was in the best interest of India but the 'existence of terrorist camps across the India-Pakistan border and continued infiltration attempts along the Line of Control (LoC) continue to pose a threat'.