India and China should collaborate over sources of energy instead of competing on these, Indian Petroleum and Natural Gas Minister Mani Shankar Aiyar said at a conference Wednesday in New Delhi.

The Indian minister made the statements at a conference on "The China Miracle" organized by the Confederation of Indian Industries (CII).

"Market forces dictate that India and China will compete in acquiring hydrocarbon properties across the world. Both India and China should work together in this field as they are the world's largest developing countries and can get the best prices," said Aiyar.

Pointing out the complementary role played by the two countries in Sudan, where China is building an oil refinery and India is laying a pipeline to carry the oil from Khartoum to Port Sudan, the minister hoped they could replicate the model worldwide.

Aiyar stressed the need for cooperation essentially to stop foreign countries from overcharging them.

"Everyone is bidding up the cost (to us) saying China is coming and to China saying India is coming," he said.

"My ambition is not to compete with China but to explore ways we can partner with China," Aiyar said.

Sun Yuxi, ambassador of China to India highlighted the similarities between the two countries and asked them to collaborate to work towards increased bilateral trade.