"India has expressed interest in obtaining supply of chemical fertilisers from Bulgaria as well as establishment of joint ventures and participation in privatisation of Bulgarian manufacturers of chemical fertilisers," Sompal said.

The government has also asked public sector fertiliser companies like Iffco and Kribco to explore the possibilites of setting up joint ventures with Bulgarian companies, he said at the inaugural function of the Tenth Indo-Bulgarian Joint Business Council (JBC).

"There exists a tremendous potential for economic cooperation between the two countries and it is a matter of concern that it has remained largely unexploited," Sompal said at the JBC organised by the Federation of Indian Chambers of Commerce and Industry (Ficci).

The two countries could alsocooperate in the field of electronics, computer software and other related sections, he said and pointed out that India could also share its expertise of agricultural research with Bulgaria. The finalisation of bilateral investment protection agreement, agreements on exchange of trade information and on mutual exchange of free space by the two countries would facilitate business interactions, Sompal said.

He said the other areas of mutual interest for the two countries could be in the field of tractors and agricultural equipment, power engineering, textiles and tourism.

Speaking on the occasion, chairman of India-Bulgaria JBC, NM Kejriwal said Bulgaria's strategic location, stable and predictable economic environment and tax reliefs for foreign investment would provide an excellent base for Indian investors.

Apart from exploring possibilities of direct investment, businessmen of the two countries could also cooperate through joint production in third countries and scope for undertaking sub-contractingshould also be explored, Kejriwal said.

Admitting that the potential of India-Bulgaria trade were vast but remained untapped, he said "There is an urgent need for bridging the existing communication and information gap between the entrepreneurs of the two countries."

Deputy minister of trade and tourism of Bulgaria, Alexander Petrov Tassev and chairman of Bulgaria-India JBC, Gueorgui Techernev also spoke during the JBC.