"We believe chances are good that India and China will continue to rise, but their ascent is not guaranteed and both will have to overcome high economic and social hurdles," a report by the US Directorate of National Intelligence has said.

The report titled "Global Trends-2025, a World Transformed" has come out as the new Barack Obama administration takes over and clearly points out that if current trends continue by 2025, China will have the world's second largest economy and will be a "leading military power."

Though the current Superpower United States will remain the single most important actor on the world stage by 2025, but it will be less dominant in the new global multi-polar system with the number of new players.

The report said India would continue on the road to rapid economic growth, but warned "regional and ethnic insurgencies that have plagued country since independence are likely to persist.

"But they will not threaten India's unity. We assess New Delhi will remain confident that it can contain the Kashmiri separatist movement. However, India is likely to experience heightened violence and instability in several parts of the country because of the growing reach of the Maoist Naxalite movement."