The fourth edition of the joint training exercise by the Indian and Chinese armies will be held in Pune from Sunday.
The Exercise Hand-in-Hand 2014 is in continuation of the series of joint exercises held by the Indian Army and the People's Liberation Army, said a defence ministry statement.
While the second edition of the exercise was held at Belgaum in 2008, it has been conducted twice in China (2007 and 2013).
"The aim of the joint training is to share the drills and practices learnt while tackling insurgency and terrorism, thereby promoting healthy military to military relations between the two armies and developing joint strategies of conducting operations in a counter terrorism environment," the statement said.
Forming part of the different levels of the military to military engagement across the entire spectrum of operations, the exercise will enrich the two sides to further hone basic military skills, it said.
"The exercise is planned at the company level with respective battalion headquarters controlling the training.
"The training and manoeuvres ... are to be supervised by a Joint Directing Panel comprising senior officials of both the nations.
"Helicopters of the Indian Air Force will also be taking active part in the various manoeuvres."
Senior military observers from both countries will attend the opening ceremony scheduled at the Aundh military station.