India and Russia will intensify their cooperation on Afghanistan and jointly combat the challenges of terrorism in the region, Prime Minister Manmohan Singh said here Friday.

'We have agreed to intensify our consultations on Afghanistan and the challenges posed by terrorism and extremism in our region,' Manmohan Singh said at a joint press conference with Russia's premier Vladimir Putin.

'There is much that India and Russia can do together to advance global peace and stability and the process of global economic revival,' Manmohan Singh said after his wide-ranging talks with Putin.

The situation in Afghanistan was among a host of regional and global issues Manmohan Singh discussed with Putin in talks that lasted for over two hours.

The two leaders also discussed the implications of a reconciliation deal with the Taliban for regional stability and agreed that the Taliban, Al Qaeda terrorists posed a threat to the entire region.

Earlier in the day, in a video conference with businessmen from Delhi, Mumbai, Kolkata and Bangalore, Putin spoke about terrorism emanating from the Afghanistan-Pakistan region.

'As far as terror groups in Afghanistan and Pakistan are concerned, it is a matter of worry for the entire region and, in fact, the whole world,' Putin said.

Banned terror groups operating from Pakistani soil are a cause of concern and a threat for both India and Russia, he said, adding that he understood India's concerns on the issue.

Stressing the proximity of India and Russia to the Afghanistan border, Putin said the situation in the violence-torn country will impact the security of both countries.

Putin landed here Thursday night on a visit lasting less than 24 hours.