India, Japan and the United States agreed to hold yearly joint naval exercises, Indian government sources said Monday, as the three countries kicked off the first such drill in eight years in the Bay of Bengal, a move likely to be noticed by China.

The last time New Delhi hosted multilateral drills in its waters in 2007 prompted disquiet in China, where some saw it as a U.S.-inspired security grouping along the lines of NATO in Europe.

But Prime Minister Narendra Modi has signaled a more robust security policy, seeking stronger strategic ties with the United States and Japan while keeping a lid on border tensions with China.