The minister in charge of India's privatisation has warned of the dangers of falling too far behind China.

Arun Shourie said that if India was too slow with its economic reforms it could see China's economic strength translated into military strength.

The minister made his comments in a speech to business leaders in Bombay.

"China started the reforms process 25 years back while we did only recently," he said.

Privatisation doubts

The minister referred to a brief war between the two countries 40 years ago.

"They (the Chinese) consider us not as rivals but nuisance. We got a slap from them in 1962.

"If we do not grow now, their economic strength will translate into military strength. A great deal is at stake if reforms do not happen," Mr Shourie said.

Opposition politicians have raised doubts about the Indian government's privatisation drive.

Copying China

But Mr Shourie brushed off fears about a weakening privatisation policy and said that India was committed to the 'strategic sale' of state companies.

The government is trying to sell 31 state run companies including some of India's top businesses.

It has set a target of raising 120bn rupees ($2.5bn; �1.6bn) from disinvestment this year.

Last month the head of the Indian manufacturing conglomerate SRF told the government it should copy China's special economic zones in order to attract more foreign investors.

In the past 10 years India has attracted foreign direct investment of $23.7bn (�15.5bn), slightly more than China has attracted in just six months.