India has proposed a comprehensive economic agreement with Russia to boost business ties between the countries and Russian President Valdimiir Putin thinks it is "a brilliant idea".

Prime Minister Manmohan Singh made the suggestion during a meeting Thursday with Putin on the sidelines of the UN General Assembly here, saying the agreement would help rapidly promote economic relations. He said New Delhi and Moscow should form a joint study group to examine the possibility.

An external affairs ministry spokesman told reporters that Russia called it "a brilliant idea" and said Russia would certainly respond to the suggestion.

Putin suggested that the proposal should be firmed up before Singh visits Moscow in December this year.