India and Russia are on the verge of strengthening economic cooperation by using positive elements from their relations prior to the split of Soviet Union in early 1990s, Russian President Vladimir Putin told a crowded gathering of applauding Indian businessmen in New Delhi.

"Creation of joint ventures is our future," said Putin, who is on a visit that has generated unprecedented interest in various quarters. There are clear indicators, both in the media and outside, that the Russian leader's present visit is unlike the one during 2000.  

Speaking at the Maurya Sheraton hotel, Putin said the volume of trade between the two countries does not reflect the actual potential between the two countries. Bilateral trade saw a downslide when  Communist Soviet Union collapsed in 1991.

"We have serious indications that the situation is changing," Putin said of the improvement in the Indo-Russian trade.

In 2000-01, Indian exports to Russia were a mere $890 million, while India's imports were just $510 million. The total bilateral trade in the last financial year was just $1.4 billion, around 2 per cent of Russia's total foreign trade.

Putin said there were indicators that the Indo-Russian trade ties were improving, with Russian companies starting oil exploration off the West Bengal coast, Oil and Natural Gas Corporation tying up with Russian firms for major projects, and Russians getting down to the supply of two nuclear reactors for the Kudankulam project.

Putin said Russia has made major strides in improving the sustainability and credibility of its currency, and the foreign exchange reserves and other economic factors for boosting international confidence were improving steadily in Russia.

He said Russia has also passed legislation for equal work opportunity, 'international book-keeping standards' and is meeting other requirements for its conversion to a market economy.

He said Russia would develop its inter-banking facilities and credit facilities to improve business with India. "Besides, the two nations need to find permanent channels for exchange of information on business opportunities," Putin said.

He said India and Russia could cooperate in several sectors including infotech, biotechnology, infrastructure development, and ferrous metals.

Also speaking on the occasion, Foreign Minister Yashwant Sinha said all the two governments can do is create an atmosphere for trade, but modern market conditions demand that private businesses need to establish direct contact tp push this effort further.

He said the two sides are working on various agreements and understandings that would transform the business environment between the two sides.