The status of physics research in India and China has been examined by using bibliometric indicators. The study is based on publication data drawn fromINSPEC-Physics for 1990 and 1995. China is ahead of India in terms of publication output. It ranks 7th in the world, whereas India is placed at 10th position. China is also ahead of India in terms of growth in its publications appearing particularly in the SCI (Science Citation Index) indexed journals. Despite its second position in publication count, India leads China in terms of average impact per paper computed using data on impact factor of the citing journals. It maintains this leading position both in 1990 and 1995. In addition, the study suggests a strategy for identifying leading areas of research in physics.