India plans to seek the backing China as it bids to enter an elite club of nations allowed to trade in nuclear supplies, Indian defence minister said on Tuesday.

Indian Defence Minister Pranab Mukherjee speaks in this May 8, 2006 file photo. [AP]

New Delhi needs the approval of the 45-nation Nuclear Suppliers Group (NSG) to access atomic fuel and equipment as part of a landmark civilian nuclear cooperation deal agreed in principle with Washington last year.

Chinese Premier Wen Jiabao said in March that China backs India's peaceful nuclear energy plans but wants nuclear weapon states to honour their obligations under the NPT.

Indian analysts see his comments as a veiled demand for New Delhi to sign the NPT, something it refuses to do as it considers the pact discriminatory.

China is a key member of the NSG, an informal group which regulates global nuclear trade and bars supplies to countries -- like India -- that have not signed the nuclear Non-Proliferation Treaty (NPT).

Indian Defence Minister Pranab Mukherjee, who visited China this month, said the government would get in touch with Beijing if its deal with Washington is approved by the U.S. Congress.

"The first thing to look into is whether it is going to have the approval of the U.S. Congress," Mukherjee told a news conference.

"China is aware of our need and requirement, of our concern, and surely as with many other countries belonging to NSG, we will be taking it up as soon as the issue is resolved in the U.S. Congress," he said.

The India-U.S. deal is struggling to win the approval of U.S. lawmakers.

Mukherjee's comments came as officials of the two countries held a second day of talks in New Delhi to resolve differences over some sections of the agreement and finalize a draft.

The deal will allow U.S. civil nuclear technology sales to India for the first time in three decades.

But Congressmen and non-proliferation experts have criticised the deal, saying it gives away too much to India and encourages proliferation.

Border talk proceeding well

Talks between India and China to resolve a decades-old border dispute are "moving forward" and the two nations do not see each other as a threat, Indian Defence Minister Pranab Mukherjee said.

The neighbours, who fought a brief but bitter border conflict in 1962, are slowly mending relations after decades of mutual suspicion.

"We do consider that India is no threat to China and they are no threat to us ... I do believe there is enough space for both of us to grow in our own areas," Mukherjee told reporters, when asked about competition for regional strategic influence and energy sources.

"Over the years, both countries have recognised that we are neighbours and that we cannot alter our neighbourhood," the minister said.

He recalled that India and China had signed agreements in 1993, 1996 and 2005 to boost confidence and resolve conflict.

These accords showed that "no one is thinking in terms of armed conflict since both countries have expressed their desire to live in peace and resolve disputes through dialogue," Mukherjee said.

The minister admitted that China was ahead of India in terms of attracting foreign direct investment and had registered a higher economic growth rate.

"They are playing their role and we are doing ours. I don't think their intention is to outmaneuver us," he said.

"There is enough space for growth for both of us."

Mukherjee said a defence accord signed during his visit to China last month, which provides for annual talks on defence issues, would help combat terrorism and improve relations between the world's two most populous countries.

The Chinese foreign ministry had said the deal was expected to see the neighbours conduct more joint military training exercises.