The Indian Navy plans to build up its maritime capabilities in the face of China's increasing activities in the Indian Ocean.
The Navy is aiming to strengthen surveillance in the ocean's key sea lanes.
The move follows the commissioning earlier this month of a new submarine that has advance stealth capabilities. India plans to build to a total of 6 stealth submarines by 2020.
The country is also planning to build 6 nuclear-powered submarines with support from France within the same timeframe.
In addition, the Navy will increase the number of its aircraft carriers from one to 2.
Chinese submarines are believed to be active in the Indian Ocean for what China claims is anti-piracy operations.
Tensions rose from June for more than 2 months after China began road construction on the China-India border. Both countries deployed troops to the area and a face-off ensued.
China then sent 14 naval ships to the Indian Ocean as an apparent show of strength.
The "Free and Open Indo-Pacific Strategy" advocated by Japan and the United States requires close cooperation with India.
India's Chief of the Naval Staff, Sunil Lanba, told reporters that he understands the role that other countries expect the Indian Navy to play.