The time had come for India to shift focus to its northern border, he said, and added that the country was capable of handling China's assertiveness along it.
Amid aggressive Chinese efforts to increase its influence in the region, the Army chief said India cannot allow its neighbours to drift away to China.
"China is a powerful country but we are not a weak nation," General Rawat told reporters here.
Referring to the US warnings to Pakistan over its handling of terrorism, General Rawat said India will have to wait and see its impact.
Terrorists are a disposable commodity in Pakistan and the Indian Army approach has been to ensure that it feels the pain, he said.