Though insignificant in military terms, the Sino-Indian joint naval exercise off the Shanghai coast marked a historic jump in defence relations between the two countries, say senior naval officers and other observers.

The exercise began on November 14 signaling a thaw in the bilateral military relations between the two Asian giants since the 1962 war in which India was humiliated.

According to a naval spokesman, Flag Officer Commanding India's Eastern Fleet, Rear Admiral R P Suthan led three naval ships, including a tanker, reached Shanghai on November 10 to a tumultuous welcome from the People Liberation Army Navy. Over 30 ships and submarines of the PLA Navy had lined up on either side of the harbour in Huanpu Jyang sporting banners welcoming the Indian ships.

Rear Admiral Xu Jiwen, commander of the Shanghai Naval Base, received the Indian ships in the presence of Vice Admiral O P Bansal, the Flag Officer Commanding-in-Chief, Eastern Naval Command, who is presently on a visit to China and Indian Ambassador Nalin Surie, the Navy said in Delhi.

The ships that participated in the joint exercise are guided missile destroyer INS Ranjit, guided missile corvette INS Kulish and replenishment tanker INS Jyoti.

According to naval sources the joint exercise involved 'preliminary search and rescue manoeuvres'. Language is among the 'key problems' with the Chinese navy but their professionalism and warm hospitality are 'impressive', sources said.

It was during Prime Minister Atal Bihari Vajpayee's visit to China in June that the decision about the joint exercise was taken. The Indian Navy believes the exercise is a 'stepping stone in enhancing inter-operability between the two navies'.

The naval spokesman said the exercise would primarily look at ensuring safety of maritime trade in the region and improving coordination in search and rescue operations at sea

The first visit of an Indian naval ship -- the old INS Delhi -- to China was in 1958 and the next came in 1995 when two naval ships visited China.

It was on September 15, 2000 that the two navies conducted what could be termed as the first joint exercise but that was 'only an exchange of personnel and basic manoeuvres, which lasted for about eight hours. It was a great success and the present initiative is the 'next logical step', navy officers say.

Both countries are apprehensive about each other's naval ambitions. India is worried about Chinese presence on its eastern water front where China already has some sort of presence in two islands, including a full-fledged listening post on Coco Island.

China is reportedly suspicious of India's ambitions in the South China Sea.