The ongoing visit by the 81-year-old Nobel Laureate to the frontier state has triggered strident protests by China.
The Dalai Lama also criticised China for making a bid to name his successor.
“The Chinese people were being fed wrong information (by China) about me,” he told reporters, adding that they realised this when they met him in other countries.
China had years ago confined the Dalai Lama-nominated Panchen Lama and projected its own Panchen Lama, a monk immediately below the rank of the Dalai Lama.
“As early as 1969, I had said the Tibetan people will decide if this very institution of Dalai Lama should continue or not. If this institution is no longer relevant, it should stop,” said the Dalai Lama, who had fled Tibet back in 1959 to take refuge in Tawang.
He, however, did not rule out the possibility of the next Dalai Lama being a woman.
While forgiving China for its atrocities committed against the Tibetans, the Dalai Lama wondered why despite his adopting a middle-path the Chinese government continued to call him a separatist.
Praising Taiwan for preserving Chinese culture, the Dalai Lama observed that China needed another cultural revolution based on compassion and “not on hatred and anger” which was the case with the one led by Mao Zedong.
On the BJP-led NDA government’s China policy, the Tibetan leader said: “It is more or less the same as that of the Congress from the days of Narasimha Rao… but I admire (Narendra) Modi, he is active and seeks development.”