Li made the remarks when Parrikar, who yesterday held extensive talks with top Chinese Generals and exchanged views on improving bilateral military to military relations, called on him.
The Chinese Premier expressed hope that defence departments and armed forces of China and India will strengthen exchanges, dialogue and communication to jointly maintain peace and stability in border areas and create a good condition for the development of bilateral ties.
China attaches high importance to its relations with India and is willing to keep close bilateral exchanges, strengthen strategic mutual trust, expand common interests and properly handle disputes so as to promote a sound and stable development of the China-India relations, Li said during his meeting with Parrikar.
Facing the sluggish world economy and unceasing regional conflicts, the cooperation and common development between the two countries will be a "great engine" for Asia's development and send a "positive signal" for world peace, Li was quoted as saying by the state-run Xinhua news agency.
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He said a further progress of bilateral defence relations would also push forward the two countries' economic and trade cooperation.
Parrikar hoped the two countries could strengthen cooperation and friendship.
Parrikar later left for Chengdu where he would visit the recently integrated western command military headquarters which has jurisdiction over entire borders with India before leaving for home.
The Defence Minister's meeting with Li came a day after he firmly conveyed India's reservations to Chinese leaders over Beijing blocking its efforts to get Pakistan-based JeM chief Masood Azhar banned by the UN.