New Delhi, April 28:: Defence Minister A K Antony said there was 'no room for complacency' on the Sino-Indian border while maintaining that India would abide by the bilateral confidence building measures with China.

"We have to constantly upgrade our military and economic capabilities," the Minister told Army commanders while referring to relations with China as he opened the five-day top Army commanders bi-annual conference.

His remarks are significant as the minister has just undertaken a major tour of the Sino-Indian frontier in Arunachal Pradesh.

The Defence Minister also said that Pakistan was continuing to provide covert support to perpetrators of the cross border terrorism and hoped for a 'more meaningful engagement with the newly elected Government in Islamabad'.

Hoping that Islamabad would take steps to curb cross border terrorism effectively, Antony said on its part Indian forces would have to be vigilant on all fronts.

Antony remarks on terrorism came as the main focus of the annual commanders conference is on terrorism specially the recent attempts to rake up an upsurge in Jammu and Kashmir.

In his first comment on Nepal, Antony said winds of political change were sweeping the Himalayan country.

Describing the changes taking place in Nepal as a 'defining moment' for the country, he said India was committed to help Kathmandu in every way to ensure an orderly and constitutional transition to multi-party democracy.

On the opening day, the Army Commanders dwelt on the subject specially the recent conference held in Pakistan Occupied Kashmir, which vowed to raise the militancy pitch in Jammu and Kashmir.