"We are at an advance stage to instituionalise a joint study group" for a free trade agreement with the the Union, Commerce Secretary Rajeev Kher said after inaugurating 'The India Show' here.
He said huge business opportunities exists in this region for Indian companies.
"We have critically evaluated our engagement with our trading partners and we have recognised that huge potential exists in regions including Latin America, Africa and CIS," he said adding "this region has been relatively left unattended by a large number of sectors".
Before starting negotiations for FTA, both countries generally constitute a joint study group to look into feasibility of entering into the trade pact.
Speaking at the occasion, India's Ambassador to Russia P S Raghavan too said that Indian firms should explore the Russian market as huge potential exists here for them.
Raghavan said there is an issue of awareness gap among businessmen of both the countries.
"There are greater opportunities for business and trade in both the countries," he added.
In 2013, the bilateral trade between India and Russia was USD 9.8 billion, he said, adding, "there is a need to increase it further".
Ahmed said the growing middle class in Russia offers huge market for Indian products in sectors such as textiles, pharmaceuticals, leather products and IT.
Talking about of 'The India Show', he said over 100 exporters from sectors including agriculture, cosmetics, engineering, home decor, textiles, leather products and pharmaceuticals are showcasing their goods.
"We expect huge footfall of buyers. We have also organised buyer-seller meet. On the sidelines of the exhibition, seminars and conferences on banking, trade facilitation and investments have been organised," he said.