Combatting terrorism is a very important part of our work

President Putin

It covers a whole range of bilateral concerns from defence and peaceful nuclear co-operation to trade and science and technology.

The agreement stresses that the new partnership is "not directed against any other state or group of states, and does not seek to create a military-political alliance."

Mr Vajpayee described the agreement as "a solemn and long-term commitment on the part of Russia and India to work in close cooperation as partners on all issues, political, economic and international".

Mr Putin and his wife at the memorial to Mahatma Gandhi

Earlier on Tuesday, Mr Putin was given a ceremonial welcome by the Indian President, KR Narayanan.

Speaking to journalists after the ceremony, he said that Russia was particularly interested in economic, cultural and scientific relations and military and technical ties.

But he added: "Of course, combating terrorism is a very important part of our work."

Fading relationship

The BBC's Delhi correspondent Mike Wooldridge says that the visit has been noticeably more low-key than President Bill Clinton's in March.

Mr Putin is the first Russian president to visit India in nearly eight years and comes amid improving ties between Delhi and Washington.

India and the erstwhile Soviet Union were close allies from the 1950s onwards, but that relationship has wilted recently.

One area in which progress is expected to be made is military co-operation between the two.

India's armed forces are heavily dependent on Russian equipment with recent purchases of Su-30 fighter aircraft and T-90 tanks.

Defence contracts signed during the visit are expected to be worth several millions of dollars.

Security

Both countries are concerned over international terrorism and religious extremism.

India is trying to contain separatist rebels in the disputed northern state of Kashmir while Russia is facing the same problem in Chechnya.

The two leaders agreed to forge a coordinated strategy to deal with Islamic militancy in Afghanistan, where recent advances by the ruling Taleban have revived concerns about renewed conflict in Central Asia.

Brahesh Mishra, Mr Vajpayee's principal secretary, said that a joint statement issued on Wednesday would give details of a joint working group on Afghanistan.

Mr Putin also said he had called on India to to take "concrete and specific" steps to resume peace talks with Pakistan.

Trade and technology

Russia is also providing India with technical expertise for two nuclear reactors in the southern state of Tamil Nadu.

Mr Putin is scheduled to visit an atomic research centre near Bombay.

The visit will also seek to improve trade between the two countries which has fallen to $1.5bn in 1999 from $5.5bn at the beginning of the 1990s.