"It is cooperation and competition... Naturally. Both are neighbours and we have to work together. There are many areas where our relations are growing and disputes in some areas for which we are trying to find solutions through negotiations. I do not expect miracles to find a solution to them. It will take its own natural time," he said.
On the whole, relations between the two countries was improving, he said.
"India is also a growing country. Indian economy is also growing and it is natural that we strengthen our capability and infrastructure along our borders on Indian soil."
Antony said the Indian armed forces were now better equipped than ever and one of the best in the world and that the country's borders- land,sea and air - are "very very safe".
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"Now Indian Armed forces are better equipped and their morale is very high. Our borders -- land, sea and air are very very safe. Our country's security is in safe hands. I am proud of our armed forces," he said.
"Times have changed. You forget about the past. Now Indian armed forces are better equiped and their morale is very high. Now we are one of the best in the world," he said.
Antony said the services of the Indian Army, Navy, Air Force and Coast Guard are now in greater demand.
The Armed Forces have defence cooperation with nearly 48 countries now, he said and added that all Navies in the world want to have joint exercises with their Indian counterpart.