Synopsis India and China are neighbours and their borders are common for thousands of kilometers. India has been a great supporter of the Chinese Revolution since long. When India became independent two years before China, India had developed very good relations with China. Former Chinese Premier Chou En Lai visited India and Jawaharlal Nehru was the Prime Minister of India. Indian people showed great affection and regard for the Chinese leaders and the Chinese people. But unfortunately there was Indo-China War in the year 1962 for the border disputes. This made the relations between India and China bitter. The Chinese leadership, tried to exploit the Indo-Pakistan and Indo-Nepal lack of cordiality to its advantage and gave assistance to Pakistan even in the manufacturing of Nuclear Bomb and tried to do harm to the Indian interests. But the new Chinese leadership which has emerged in the post Mao period has been quite pragmatic and has kept the border dispute in the background and is making sincere efforts to improve Indo-China relations. At the moment there is a great appreciation from both the sides to solve the problem between the two countries by talks and consultation. In this work late Prime Minister Rajiv Gandhi played a very important role.