The decision to hold the 'Hand-in-Hand' series of exercises from November 4-14 was taken in a meeting between Indian and Chinese military officials here, sources said.
During the war games, the two sides will practice counter insurgency and counter terrorism manoeuvres under the UN mandate, they said.
The third edition of the exercise is being held after a gap of almost five years after the drills in Belgaum in December 2008. The first edition of the exercise was held in Kunming in China in 2007.
The two sides decided to resume the joint exercises in 2012 after the meeting between the then Chinese defence minister Gen Liang Guanglie and his Indian counterpart A K Antony here.
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Recently, the two countries also decided to ramp up their military exchanges by having joint exercises between their navies and the air forces.
The exchange of officers in training institutions is also planned to be enhanced by the two countries.
However, it was engaged in a face-off with the PLA troops on at least two occasions this year including incidents in Depsang in April and the latest one being in Choglagam area of Arunachal Pradesh where the Chinese stayed put for four days around Independence Day celebrations.