"We are beginning the process of full-fledged inclusion of India into the Shanghai Cooperation Organisation." Putin said.
He also termed India's inclusion in the group as very important event after PM Modi expressed his thanks.
No new member has been inducted into the SCO since its creation in 2001. The group was formed by the leaders of Russia, China, Kazakhstan, Kyrgyzstan, Tajikistan and Uzbekistan. Earlier, the countries, except for Uzbekistan, were members of the Shanghai Five, a political union formed in 1996.
Currently Afghanistan, India, Iran, Mongolia and Pakistan - have observer-nation status, while three more - Belarus, Turkey and Sri Lanka - have dialogue partner status.
Pakistan is also expected to be included in the group as member nation.