Putin, who arrived in Goa after a delay of nine hours due to fog, held restricted talks with Modi after which the two leaders will be joined by their respective delegations.
"We expect a very fruitful discussion on various issues. Defence and security issues to dominate," MEA spokesperson Vikas Swarup said.
The two sides are expected to sign over a dozen agreements especially in the field of defence and energy in the afternoon following the talks.
The two leaders will also exchange views on important regional and international issues.
Indian envoy to Russian Pankaj Saran said, "Indo-Russia ties have more than just the bilateral dimension. There are regional and global issues, various troubled hotspots where Russia has stakes and where India has stakes.