The Chinese ships docked in Yangon on Sunday afternoon and were set to launch a series of exchanges with Myanmar's navy, Xinhua news agency reported.
"India has come to realise that China has been showing more than the normal interest in the Indian Ocean affairs. So we are closely monitoring the Chinese intentions," Foreign Minister S.M. Krishna told parliament.
He did not make direct reference to the Chinese ships, but China is a key ally and trading partner of the junta that has ruled Myanmar since 1962.
China buys teak and gems from Myanmar and has shielded it from UN sanctions over rights abuses as a veto-wielding, permanent member of the Security Council.
India also looks to Myanmar for potential oil and gas imports and was criticised by rights monitors for hosting reclusive junta leader Than Shwe on a state visit to New Delhi in June.
Despite growing trade between China and India, ties between the emerging giants are wracked by mistrust.Border disputes in Kashmir and the northeastern Indian state of Arunachal Pradesh, a short war in 1962 and the presence of Tibet's spiritual leader, the Dalai Lama, in India all contribute to an atmosphere of suspicion.