The Indian Embassy in Beijing said in a statement the visit by INS Shivalik "highlights the friendly exchanges and bilateral defence cooperation" between India and China.
China's People's Liberation Army (PLA) Navy is hosting the event in the northeastern port of Qingdao, the headquarters of its North Sea fleet, as it prepares to mark its 65th anniversary with great fanfare. President Xi Jinping is expected to presided over the celebrations.
At least 10 countries have so far confirmed their participation, including India, Australia, South Korea, New Zealand, Indonesia and Pakistan, according to a provisional list.
With India and Pakistan taking part, the review and exercise will also provide a rare instance of both countries jointly taking part in a naval exercise, the paper said.
The event will take place along with the annual meeting of the Western Pacific Naval Symposium (WPNS) – a US-established grouping of 20 countries, including Australia, Canada, Russia, Japan, South Korea and China, and three observers - India, Bangladesh and Mexico.
China invited Japan's Navy chief to attend the WPNS, but excluded Japan from the international fleet review and exercise.
Japanese Defence Minister Itsunori Onodera said last week it was "unfortunate that China took such an approach", which follows rising tensions over disputed East China Sea islands.