India and Shanghai Cooperation Organisations (SCO)

By Pradeep N

Comprehensive Study Notes for International Relations

Covering: History • Trade • India’s Role • Key Agreements • Political & Strategic Dimensions

2025–26 Edition

1. OVERVIEW & QUICK FACTS

What is the SCO?The Shanghai Cooperation Organisation (SCO) is a permanent intergovernmental international organisation founded on 15 June 2001 in Shanghai. It is the world’s largest regional organisation by geographic coverage and population, encompassing about 40% of the world’s population and 30% of global GDP. India became a full member in 2017.

Key Facts at a Glance:

ParameterDetails
Founded15 June 2001, Shanghai, China
HeadquartersBeijing, China
Current Members (2024)China, Russia, India, Pakistan, Kazakhstan, Kyrgyzstan, Tajikistan, Uzbekistan, Iran, Belarus (10 full members)
Observer StatesAfghanistan, Belarus (now member), Mongolia, Turkey, Ukraine (suspended)
Dialogue PartnersAzerbaijan, Armenia, Cambodia, Nepal, Sri Lanka, Egypt, Qatar, Saudi Arabia, UAE, Türkiye, Maldives, Myanmar, Kuwait, Bahrain
Official LanguagesRussian and Chinese
India’s Membership YearFull Member since June 2017 (Astana Summit)
India’s SCO Chair2022–2023 (hosted Goa Summit, May 2023)
India’s Trade with SCO~$260 billion (2022–23 estimated)
Total SCO Area~34 million sq. km (25% of world’s land area)

2. BRIEF HISTORY OF THE SCO

2.1 Origins: Shanghai Five (1996–2001)

The roots of the SCO trace back to the Shanghai Five mechanism, formed in 1996 among China, Russia, Kazakhstan, Kyrgyzstan, and Tajikistan. The primary goal was to build confidence-building measures along shared borders following the dissolution of the Soviet Union.

YearDevelopment
1996Shanghai Five formed — border demilitarisation agreements signed
1997Moscow Declaration — deeper security cooperation framework
1998Alma-Ata Declaration — expanded cooperation scope
1999Bishkek Declaration — counter-terrorism and border control
2000Dushanbe Declaration — institutionalising the framework
2001SCO formally established; Uzbekistan joins; Declaration of Creation signed

2.2 SCO Formation & Early Growth (2001–2010)

• June 15, 2001: SCO officially founded in Shanghai with 6 members.

• 2002: SCO Charter signed in St. Petersburg; Regional Anti-Terrorist Structure (RATS) established.

• 2003: SCO Secretariat opened in Beijing; first joint military exercises (Peace Mission).

• 2004: Mongolia granted Observer status; SCO became UN General Assembly observer.

• 2005: India, Pakistan, and Iran granted Observer status — a pivotal moment.

• 2007: SCO-CSTO Joint Declaration signed.

• 2009: SCO Development Bank discussions initiated; Afghanistan engagement deepened.

2.3 Expansion Phase (2010–2020)

• 2010: Moratorium on new memberships lifted; expansion debates began.

• 2015: India and Pakistan formally invited to start accession process at Ufa Summit.

• 2016: India and Pakistan sign Memorandum of Obligations at Tashkent.

• 2017: India and Pakistan become FULL MEMBERS at Astana Summit (June 2017) — landmark expansion.

• 2018: Qingdao Summit — SCO+8; first summit with India and Pakistan as full members.

• 2021: Iran begins accession process; Taliban takeover in Afghanistan complicates regional security.

2.4 Recent Expansion (2021–2024)

• 2022: Iran formally admitted; India chairs SCO (2022–23).

• 2023 (Goa/New Delhi Summit): India hosts SCO summit in virtual format; Belarus begins accession. Saudi Arabia, Egypt, UAE, Qatar, Bahrain, Maldives, Kuwait, Myanmar join as dialogue partners.

• 2023: Belarus formally joins as full member at Astana Summit.

• 2024: SCO now has 10 full members; continues largest expansion in its history.

Key InsightSCO’s expansion from 6 to 10 members between 2017–2024 reflects its growing appeal as an alternative multilateral platform outside Western-dominated institutions like the G7 or NATO-aligned security frameworks.

3. TRADE & ECONOMIC DATA

3.1 India’s Trade with SCO Members

India’s trade with SCO member states is substantial and growing, driven primarily by energy imports (Russia), manufactured goods (China), and regional connectivity projects.

SCO MemberIndia’s Exports (2022–23, USD Bn)India’s Imports (2022–23, USD Bn)Total Trade (USD Bn)
China~$15.3 Bn~$98.5 Bn~$113.8 Bn
Russia~$4.2 Bn~$46.3 Bn~$50.5 Bn
Kazakhstan~$0.9 Bn~$0.5 Bn~$1.4 Bn
Uzbekistan~$0.4 Bn~$0.1 Bn~$0.5 Bn
PakistanNegligible (political barriers)Negligible~$0.1 Bn
Iran~$0.4 Bn~$1.2 Bn~$1.6 Bn
Other SCO Members~$2.5 Bn~$3.0 Bn~$5.5 Bn
TOTAL (approx.)~$24 Bn~$150 Bn~$173+ Bn

Note: Figures are approximate estimates based on Ministry of Commerce data and FICCI reports. Russia trade surged post-2022 due to discounted crude oil purchases.

3.2 SCO’s Share in India’s Overall Trade

IndicatorValue
India’s Total Trade (2022–23)~$1.55 Trillion
Trade with SCO Members~$175–200 Billion (approx.)
SCO’s Share in India’s Trade~11–13%
India’s Trade Deficit with SCO~$126 Billion (driven by China & Russia)
India–Russia Energy Trade (2023)~$46 Billion (oil, defence, fertilisers)
India–China Trade Deficit (2022–23)~$83 Billion (largest bilateral deficit)

3.3 Key Economic Pillars in SCO Trade

Energy

• Russia: India imports massive volumes of crude oil post-Ukraine war at discounted prices.

• Kazakhstan, Uzbekistan: Central Asian energy corridors; hydrocarbons and uranium trade.

• Iran: Prior to sanctions, key oil supplier; discussions on INSTC transit for energy.

Connectivity & Infrastructure

• International North-South Transport Corridor (INSTC): India-Iran-Russia corridor.

• Chabahar Port (Iran): India’s strategic infrastructure investment (~$500 million).

• Ashgabat Agreement: Multi-modal transport corridor to Central Asia.

Pharmaceuticals & IT

• India exports pharmaceuticals and IT services to Central Asian SCO members.

• Growing Indian presence in Kazakhstan, Uzbekistan’s healthcare sector.

3.4 SCO Macroeconomic Snapshot (2023)

SCO MemberGDP (USD Trillion, 2023)Population (Bn)Key Sectors
China17.71.41Manufacturing, Tech, Finance
India3.51.44IT, Pharma, Agriculture
Russia1.860.14Energy, Defence, Metals
Kazakhstan0.260.02Oil, Gas, Mining
Iran0.370.09Oil, Gas, Petrochemicals
Pakistan0.340.24Textiles, Agriculture
Uzbekistan0.090.037Cotton, Gold, Gas
Others~0.1~0.05Various

4. INDIA’S ROLE IN THE SCO

4.1 India’s Journey: Observer to Full Member

YearStatus/Event
2005India granted Observer Status at SCO
2012India becomes Dialogue Partner
2015Invited to begin accession process (Ufa)
2016Signed MOU of Obligations (Tashkent)
2017Full Member at Astana Summit
2020First SCO Defence Ministers Meet with India
2022–23India assumes SCO Chairmanship
2023India hosts SCO Summit (Goa/Virtual, May 2023)

4.2 India’s Strategic Objectives in SCO

• Regional Connectivity: Access to landlocked Central Asian markets through SCO frameworks (INSTC, Chabahar).

• Counter-Terrorism: Institutionalise RATS (Regional Anti-Terrorist Structure) cooperation; combat terror financing.

• Energy Security: Diversify energy imports; leverage Russian and Central Asian hydrocarbons.

• Balancing China: Engage China multilaterally while managing bilateral tensions post-Galwan (2020).

• Multipolarity Advocacy: Support non-Western multilateral frameworks; challenge unipolar global order.

• Economic Integration: Promote rupee-based trade settlements; reduce dollar dependence.

• Afghanistan Stability: Prevent Taliban-controlled Afghanistan from becoming terror export hub.

4.3 India’s SCO Chairmanship (2022–23)

India’s SCO Chairmanship ThemeIndia’s chairmanship theme was ‘SECURE’ — Security, Economic development, Connectivity, Unity, Respect for sovereignty and territorial integrity, and Environment.

• India hosted 100+ SCO-related events across sectors: environment, tourism, startups, digital economy, science & technology.

• Hosted SCO Film Festival, Shared Buddhist Heritage conference, Traditional Medicine Expert Group meetings.

• Promoted ‘One Earth, One Family, One Future’ — aligning with India’s G20 Presidency theme.

• Organised SCO Startup Forum — linking India’s startup ecosystem with SCO member states.

• May 2023: Hosted Foreign Ministers’ Meeting in Goa (PM Modi chaired).

• July 2023: SCO Summit held in virtual format — India emphasised counterterrorism, connectivity, and de-dollarisation.

4.4 India’s Key Contributions to SCO

AreaIndia’s Contribution
Counter-TerrorismPushed for naming Pakistan-based terror groups; RATS cooperation
Digital EconomyPromoted UPI, DigiLocker in SCO Digital Economy Working Group
Traditional MedicineAdvocated Ayurveda, Yoga as SCO wellness frameworks
ConnectivityChampioned INSTC, Chabahar; opposed BRI conditionality
Cultural DiplomacySCO Film Festival, shared Buddhist heritage initiatives
StartupsInitiated SCO Startup Forum; IndiaStack model
EnergyEngaged Kazakhstan, Uzbekistan, Russia on energy diversification
SecurityProposed SCO Counter-Narcotics Strategy; joint military drills

5. IMPORTANT AGREEMENTS & DECLARATIONS

5.1 Foundational Documents

DocumentYearSignificance
Declaration on Creation of SCO2001Founding charter; defined purpose, principles, and goals
SCO Charter2002Legal basis; principles of sovereignty, non-interference, multilateralism
Shanghai Convention on Combating Terrorism2001Basis for RATS; defined three evils: terrorism, separatism, extremism
Agreement on Cooperation in Combating Illicit Drug Trafficking2001Counter-narcotics cooperation framework

5.2 Key Summit Declarations Involving India

Summit/DeclarationYearKey Outcomes for India
Astana Declaration2017India officially admitted as full member; joint counter-terror statement
Qingdao Declaration2018First full summit with India; BRI vs. INSTC tensions noted; security cooperation
Bishkek Declaration2019Connectivity, Afghanistan stability, RATS expansion
Moscow Declaration (Virtual)2020Post-COVID economic recovery; Afghanistan; India-Pakistan tensions
Dushanbe Declaration2021Afghanistan; SCO-CSTO cooperation; terrorism; Iran accession initiated
Samarkand Declaration2022Iran admitted; food security; energy cooperation; India raised terror concerns
New Delhi Declaration (Virtual)2023India’s chairmanship outcomes; SECURE framework; digital economy; traditional medicine
Astana Declaration2024Belarus full membership; expansion of dialogue partners; AI governance, de-dollarisation

5.3 Critical Agreements: India’s Perspective

Agreement on Regional Anti-Terrorist Structure (RATS)

RATS, headquartered in Tashkent, is SCO’s counter-terrorism arm. India participates in joint anti-terror exercises and intelligence sharing but has consistently pushed for naming Pakistan-based groups like Lashkar-e-Taiba and Jaish-e-Mohammed — a demand resisted by China and Pakistan.

SCO-CSTO Cooperation Declaration (2007)

Established a framework for SCO-CSTO (Collective Security Treaty Organisation) cooperation. India is not a CSTO member but engages via SCO on overlapping security concerns, particularly Afghanistan.

Memorandum on Information Security Cooperation

Signed at multiple summits; establishes norms for cybersecurity and information sharing. India has engaged cautiously given its concerns about China’s role in cyber espionage.

Chabahar Port Agreement (India-Iran, bilateral but SCO-linked)

India’s $500 million investment in Iran’s Chabahar port provides direct access to Central Asian SCO members, bypassing Pakistan. The port underpins India’s connectivity ambitions within the SCO framework.

5.4 Peace Mission Exercises (Joint Military Drills)

ExerciseYearSignificance
Peace Mission 20032003First SCO joint anti-terror exercise (China-Russia)
Peace Mission 20102010India participated as observer
Peace Mission 20182018India’s first full participation post-membership
Peace Mission 20212021Russia (Orenburg); counter-terrorism focus
Peace Mission 20232023Russia; India sent contingent (amid LAC tensions note)

6. POLITICAL ASPECTS

6.1 SCO’s Political Philosophy

• ‘Shanghai Spirit’: mutual trust, mutual benefit, equality, consultation, respect for diverse civilisations, common development.

• Non-interference in internal affairs — cornerstone of SCO’s political approach.

• Rejects ‘double standards’ in international relations — implicit critique of US/Western foreign policy.

• Advocates multipolar world order; provides platform for Eurasian powers to coordinate.

6.2 India’s Political Positioning within SCO

India’s Unique PositionIndia occupies a distinctive position in the SCO — it is the only liberal democracy and the only member that is also part of Quad, I2U2, G20 presidency, and maintains strategic partnerships with the US and Europe. This ‘strategic autonomy’ makes India both indispensable and occasionally awkward within the SCO framework.

• India has consistently refused to endorse China’s Belt and Road Initiative (BRI) within SCO frameworks, citing sovereignty concerns (BRI passes through Pakistan-Occupied Kashmir).

• India supports SCO’s counter-terrorism mandate but clashes with Pakistan and China on naming specific groups.

• India has skipped certain SCO events in protest (e.g., PM Modi did not attend Samarkand Summit in person in 2022; attended virtually in 2023).

• India promotes ‘connectivity without debt-traps’ — a critique of Chinese infrastructure lending.

6.3 India-China Political Dynamics within SCO

DimensionIndia’s PositionChina’s Position
BRIStrongly opposes — sovereignty violation via PoKChampions BRI as SCO connectivity
TerrorismDemands naming Pakistan-based groupsBlocks such naming; protects Pakistan
Border DisputesLAC tensions affect SCO engagementSeparates bilateral from multilateral
Dollar AlternativesCautiously supportive (rupee trade)Promotes yuan internationalisation
SCO ExpansionSupports adding Gulf states as partnersControls pace of expansion

6.4 India-Pakistan Political Tensions within SCO

• Pakistan joined SCO in 2017 alongside India — creating persistent friction.

• India boycotted Pakistan-hosted SCO events (e.g., 2023 SCO Council of Heads of Government in Islamabad — India sent representative, PM did not attend).

• Cross-border terrorism remains the core India-Pakistan dispute that spills into SCO deliberations.

• SCO’s non-interference principle prevents meaningful resolution of India-Pakistan disputes within the organisation.

• India has blocked Pakistan’s proposals in RATS meetings related to Kashmir.

7. STRATEGIC ISSUES & CHALLENGES

7.1 Afghanistan & Regional Security

• Taliban takeover (August 2021) created a strategic vacuum; SCO members have divergent approaches.

• India closed its Kabul embassy initially but reopened a technical mission; engages cautiously.

• Pakistan and China have maintained ties with Taliban; India remains wary of radical Islamism spilling into Kashmir.

• RATS has expanded its mandate to include Afghan-linked terror networks.

• SCO Contact Group on Afghanistan continues diplomatic engagement.

7.2 Russia-Ukraine War: Impact on SCO

• Russia’s invasion of Ukraine (February 2022) created fault lines within SCO.

• India abstained from UN votes condemning Russia; increased Russian energy imports.

• Central Asian SCO members (Kazakhstan, Uzbekistan) did not endorse Russia’s actions — reflecting internal SCO diversity.

• SCO refused to become an anti-Western bloc over Ukraine — preserving its ‘non-interference’ identity.

• India leveraged situation for discounted Russian oil — boosting energy security.

7.3 China’s Strategic Role & India’s Concerns

IssueChina’s StrategyIndia’s Concern
BRI within SCOUse SCO to legitimise BRI connectivityBRI bypasses India; PoK sovereignty
Pakistan ShieldProtect Pakistan from terror designationsLashkar, JeM operate with impunity
Yuan in SCOPromote yuan in trade settlementsChina gaining monetary dominance
SCO ExpansionExpand influence via new membersIndia’s voice diluted further
Debt DiplomacyInfrastructure loans to Central AsiaDependency on China, undermining INSTC
Cyber DomainSet digital norms via SCOIndia wary of China-controlled cyber frameworks

7.4 Connectivity vs. BRI: Core Strategic Dilemma

BRI vs. INSTC: India’s Core StanceIndia promotes the International North-South Transport Corridor (INSTC) — a 7,200 km multi-modal route connecting India through Iran, Azerbaijan, and Russia to Europe — as an alternative to China’s BRI. India has consistently refused to sign any SCO document that endorses BRI, arguing it violates sovereignty over Pakistan-occupied Kashmir. This makes India the only SCO member to actively oppose the BRI framework.

7.5 De-dollarisation Debate

• SCO has increasingly discussed moving away from US dollar in intra-SCO trade.

• India has promoted rupee-based trade settlements, especially with Russia post-sanctions.

• China promotes yuan internationalisation; India prefers diversified currency baskets.

• SCO Development Bank discussions remain stalled partly due to India-China rivalry over governance.

7.6 Cybersecurity & Information Space

• SCO has an Information Security Expert Group — China seeks to define ‘information sovereignty’ norms.

• India cautious about China’s role in SCO cyber frameworks given documented Chinese cyber intrusions.

• SCO’s approach to internet governance aligns more with ‘cyber sovereignty’ (China/Russia model) than India’s open internet advocacy.

7.7 SCO’s Limitations: A Critical Assessment

LimitationExplanation
Consensus-Based Decision MakingAny member can block decisions; India-China, India-Pakistan gridlock is frequent
No Free Trade AgreementSCO lacks an FTA; trade is governed by bilateral pacts
India-Pakistan RivalryPerpetual bilateral tensions undermine regional cooperation potential
China’s Dominant RoleChina’s economic size and BRI makes it de facto agenda-setter
No Military AllianceUnlike NATO, SCO has no mutual defence obligation
Afghanistan ImpasseNo agreed SCO policy on Taliban; members pursue bilateral engagements
Currency DisputesYuan vs. Rupee vs. national currencies — no common framework

8. RECENT DEVELOPMENTS (2022–2024)

8.1 India’s SCO Chairmanship Outcomes (2022–23)

• Hosted 100+ SCO events; launched SECURE framework for cooperation.

• SCO Film Festival, Shared Buddhist Heritage, Traditional Medicine Expert Group meetings held in India.

• SCO Startup Forum established — India’s tech ecosystem promoted.

• India pushed for SCO counterterrorism framework to name state-sponsored terror groups (partially successful).

• Digital Economy Working Group: India promoted UPI, DigiLocker, India Stack model.

8.2 2023 New Delhi/Goa Summit (Virtual Format)

• India hosted the SCO Heads of State Summit in virtual format — unique in SCO history.

• PM Modi chaired; New Delhi Declaration adopted.

• Belarus admitted as 10th full member.

• New dialogue partners added: Saudi Arabia, Egypt, UAE, Qatar, Bahrain, Maldives, Kuwait, Myanmar.

• PM Modi did not mention Quad or India’s Western partnerships — maintained SCO-specific multilateral posture.

• India emphasised: connectivity without debt traps, counterterrorism, traditional medicine, digital cooperation.

8.3 2024 Astana Summit (Kazakhstan)

• Belarus formally acceded as 10th full member.

• Discussions on AI governance, digital economy, climate change — new SCO agenda items.

• India re-emphasised INSTC and Chabahar connectivity; cautious on yuan-dominated trade frameworks.

• India-China bilateral: Limited margins engagement amid ongoing LAC disengagement process.

• External Affairs Minister S. Jaishankar represented India; PM Modi did not attend in person.

8.4 India-Russia Energy Axis within SCO

Indicator202120222023 (est.)
Russian crude oil share in India’s imports~2–3%~16%~40%+
India-Russia trade value (USD Bn)~$13 Bn~$35 Bn~$50 Bn
India’s oil savings (discount vs. market)Minimal~$10–15 Bn~$15–20 Bn

8.5 India’s Chabahar Port: SCO Connectivity Milestone

Chabahar Port — Game Changer for India’s SCO StrategyIn May 2024, India signed a 10-year contract with Iran to operate the Shahid Beheshti terminal at Chabahar port. This gives India direct access to landlocked Central Asian SCO members (Afghanistan, Uzbekistan, Kazakhstan) bypassing Pakistan. US granted India a specific sanction waiver for Chabahar — reflecting its strategic importance. Trade through Chabahar grew from near-zero to meaningful volumes by 2024.

8.6 Key Events Timeline (2022–2024)

DateEventSignificance
Sept 2022Samarkand SCO SummitIndia raises terror concerns; Iran joins; India-China bilateral on sidelines
Oct 2022India assumes SCO ChairmanshipSECURE framework launched
May 2023SCO Foreign Ministers, GoaIndia as chair; connectivity, counterterrorism discussed
Jul 2023SCO Summit (Virtual, India)New Delhi Declaration; Belarus joins; Gulf states as partners
Oct 2023SCO Council of Heads of Govt, IslamabadIndia represented by official, PM absent — political message
2024 (Jan–May)SCO Senior Officials MeetingsAI governance, de-dollarisation discussions
May 2024India-Iran Chabahar 10-yr dealStrategic connectivity milestone
Jul 2024Astana SCO SummitBelarus full member; new dialogue partners; AI, climate on agenda

9. QUICK REVISION: EXAM-READY TABLES

9.1 India & SCO — Key Facts for Exams

QuestionAnswer
When did India become full SCO member?2017 (Astana Summit)
India’s SCO Chairmanship period?2022–23
Theme of India’s SCO Chairmanship?SECURE
India’s connectivity alternative to BRI?INSTC (International North-South Transport Corridor)
Why does India oppose BRI in SCO?CPEC passes through Pakistan-Occupied Kashmir
SCO’s counter-terrorism body?RATS — Regional Anti-Terrorist Structure (Tashkent)
SCO’s ‘three evils’?Terrorism, Separatism, Extremism
India’s port for Central Asia access?Chabahar (Iran) — 10-yr deal signed May 2024
India’s trade surplus/deficit in SCO?Massive deficit (~$126 Bn) led by China & Russia
SCO Secretariat location?Beijing, China
How many full members does SCO have (2024)?10 members (China, Russia, India, Pakistan, Kazakhstan, Kyrgyzstan, Tajikistan, Uzbekistan, Iran, Belarus)
Who hosts SCO’s RATS?Tashkent, Uzbekistan

9.2 Arguments FOR India’s SCO Membership

• Access to landlocked Central Asian markets for trade and energy.

• Multilateral platform to engage China and Russia simultaneously.

• Counter-terrorism cooperation through RATS.

• Connectivity via INSTC, Chabahar — alternative to Pakistan-controlled routes.

• Advocacy for a multipolar world order.

• Energy diversification: Russian oil, Central Asian hydrocarbons.

• Cultural diplomacy: Yoga, Ayurveda, Buddhist heritage — soft power projection.

9.3 Arguments AGAINST / Limitations for India

• India-Pakistan tensions prevent effective SCO cooperation on terrorism.

• China’s dominance shapes SCO agenda — India often isolated on key issues.

• BRI vs. INSTC tension: India can’t accept SCO connectivity frameworks wholesale.

• SCO’s ‘Shanghai Spirit’ non-interference conflicts with India’s democratic values advocacy.

• No FTA — limited economic integration within SCO.

• Risk of appearing anti-Western — balancing SCO with Quad/US partnerships is delicate.

• Russian energy imports via SCO may invite secondary US sanctions concerns.

International Relations — SCO Notes​Page


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