"We share issues in common", which dictates the "logical base" for the relationship, she said, adding the relations between the two neighbours had ramifications "far beyond the bilateral".
Both countries shared many common stakes in the future, such as developing their economies and grappling with environmental issues, Rao said at a reception hosted for a 100-member strong visiting Indian Youth Delegation here.
The changes in ties have been reflected among others things, in the surging trade volume between the two countries and stake holders going beyond government-to-government level to cover scholars, cultural personalities, media persons and youth, she added.
The delegation, a virtual mini-India with sprinkling of youngsters from every part of the country, comprises "distinguished young persons" under diverse categories including Chinese language and studies, National Service Scheme, academics, panchayati raj, media, culture and sports.
The group, third under Indo-China Youth Exchange Programme since 2005, is led by Secretary, Department of Youth Affairs, S K Arora, who said people-to-people contact was at the core of a "sustainable and lasting friendship" and youth exchanges would have a "ripple effect".
He said that possibility of exchange of young entrepreneurs and civil society volunteers between the two sides was also being explored.
