Both countries are setting the tone for the June 9-10 SCO meeting in Qingdao with effusive statements.
The two sides have agreed to ramp up defence ties, and the Indian Navy is likely to get access to the port at Sabang island.
The idea of a 'quad' between India, the US, Japan, and Australia is gaining traction once again. But there are obstacles ahead.
Besides strengthening the prospects for joint operations, the three-day exercise might hold another attraction for the Indian Navy.
According to new reporting, the armed forces of the countries are taking baby steps to make the pact a reality.