A senior Indian minister has said that only the Dalai Lama and the organization he has set up have the authority to identify his successor as the spiritual head of Tibetan Buddhism, in a rare comment contradicting rival China's long-held position.

China said it has the right to approve the Dalai Lama's successor, warning India against any interference in its 'domestic affairs'.

The contentious issue is potentially a flashpoint in India’s relationship with China, which has shown signs of a thaw, despite Beijing openly taking sides with Pakistan during the four-day Indo-Pakistan conflict in May.