The Indian contingent includes nearly 450 personnel while the Russian side is being represented by around 1,000 troops in the 10-day exercise Indra.
The opening ceremony of the exercise at Vladivostok was marked by tri-services march-past by both the sides, besides display of traditional martial arts by the Indian troops.
"The joint tri-service exercise will be a demonstration of the increasing commitment of both nations to address common challenges across the full spectrum of operations," the defence ministry said in a statement yesterday.
He said with the rich operational experience of Russian and Indian armies in counter insurgency operations, both sides will gain immensely from each other to further develop their capabilities.
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Lt Gen Solomatin, Chief of Staff, Eastern Military District of the Russian Federation, said that the exercise will further strengthen the relationship between the two defence forces.
Lt Gen JS Negi, leader of the tri-services observer delegation, said that the conduct of the first ever tri- service exercise between the two countries is a significant step in mutual cooperation and marks an important milestone in the 70th anniversary of diplomatic relations between the two countries.
The Indian Army, Navy and Air Force have been holding bilateral exercises separately with their Russian counterparts but it is is for the first time that the two countries are carrying out a tri-services exercise.
During Prime Minister Narendra Modi's visit to Russia in June, it was decided to "upgrade and intensify" defence cooperation through joint manufacture, co-production and co- development of key military hardware and equipment.
India is already working on significantly ramping up its defence capability and has lined up billions of dollars worth of procurement proposals as part of military modernisation.