Chinese Defence Minister General Liang Guanglie had gifted Rs 100,000 in sealed envelopes to two Indian Air Force pilots.
China said new Delhi and Beijing had agreed to push forwards relations and step up military to military exchanges.
The Chinese military`s diplomacy will help reduce miscalculations amid territorial disputes and concerns of neighbours, analysts said.
Chinese Defence Minister Gen Liang Guanglie will have a packed schedule in India on Tuesday.
Chinese Defence Minister`s India visit is "a sign that military exchanges between China and India are back on track", an expert told a Chinese daily.
Chinese Defence Minister Gen Liang Guanglie will skip a visit to the war memorial Amar Jawan Jyoti.
Chinese Defence Minister Liang Guanglie on Wednesday began a three-day Asian tour that will also take him to India.
Chinese Defence Minister Liang Guanglie on Thursday visited the United States Military Academy at West Point.
The Defence Ministers of the US and China met for the first time in Washington in nine years.
Day in Pics: 31st August
Showbiz World - August 31, 2014
Famous Ganesh Pandals in Mumbai