From the beginning of the 21st century until now, the strategic competition between the two Asian powers, India and China, has become increasingly fierce in all regions and in all fields. In South Asia - an area with its own peculiarity as “the region of India’s traditional influence”, India still has certain advantages but is gradually letting China dominate in some aspects. Likewise in the field of cultural diplomacy, despite the natural advantage of having close cultural and historical ties with neighboring countries, in some cases India has not yet fully brought into play its advantages and are surpassed by China. The paper clarifies the reality of India - China competition in South Asia in the field of cultural diplomacy through the following main contents: (i) cultural promotion and cooperation activities, (ii) the establishment and influence of cultural centers, (iii) cooperation in education, training and human resource development, (iv) journalism and communication affairs. Thereby, the paper affirms that India’s cultural influence in South Asia is irreplaceable, but it needs to be wary of China’s increasing presence and extremely active promotion.