New Delhi, Aug 24 - Ruling out rivalry with Beijing, External Affairs Minister S.M. Krishna Monday said that there was 'enough space for both India and China to grow', and stressed that outstanding issues should be resolved through dialogue.

'There is space for both of us to grow and meet our aspirations,' Krishna told 112 Indian ambassadors gathered here for an annual conference to debate key foreign policy issues and strategic challenges facing the country.

Krishna's remarks come amid signs of recent strains in bilateral ties due to China?s opposition to a development loan for India with the Asian Development Bank on grounds that it included an allocation for Arunachal Pradesh, India?s northeast state which Beijing has claimed in its entirety.

Earlier this month, New Delhi reacted sharply to an article by a Chinese strategist saying Beijing should break up India into 20-30 independent states.