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Foreign Policy Watch: India-SCO

Unmistakable shift (India signalled a change in foreign policy stance at SCO Summit)

Explained | International Relations | Mains Paper 2: Bilateral, Regional and Global Groupings and agreements involving India

Introduction

India’s foreign policy has historically oscillated between balancing great power politics and safeguarding its strategic autonomy. The 2025 SCO Summit in China witnessed a landmark moment: Prime Minister Narendra Modi’s first bilateral engagement with Chinese President Xi Jinping since the 2020 military standoff. The visit not only revived dormant dialogues but also underscored India’s shifting posture in a multipolar world marked by U.S. sanctions, instability in West Asia, and contestations within Eurasia.

Significance of Indian Prime Minister’s Visit to China

  1. Seven-year gap: PM Modi had not travelled to China since 2017, making this a major diplomatic breakthrough.
  2. First bilateral since standoff: Meeting with Xi Jinping was the first since the 2020 military confrontation along the LAC.
  3. Three-year SCO absence: Modi’s return to SCO after three years shows India’s willingness to re-engage with a grouping seen as anti-Western.
  4. Optics of bonhomie: Images with Xi and Putin evoked memories of the inactive Russia-India-China trilateral, signalling recalibration.

Revival of India-China Bilateral Engagement

  1. Troop disengagement: Both leaders endorsed the normalisation process initiated in October 2024.
  2. Boundary resolution: Agreed to fast-track talks between Special Representatives.
  3. Connectivity revival: Resumption of direct flights and visa facilitation announced.
  4. Economic ties: Leaders stressed on building trade relations to stabilise world commerce.
  5. Mutual trust rhetoric: Modi stressed ties based on “mutual trust, respect and sensitivity”, while Xi used the metaphor of “Dragon and Elephant” coming together.

External Drivers of India’s Foreign Policy Recalibration

  1. U.S. tariffs and sanctions: American restrictions and mistrust of the Trump administration nudged India to diversify partnerships.
  2. Strategic compulsion: India managed to side-step concerns like China’s support to Pakistan during Operation Sindoor, UNSC/NSG opposition, and shielding of terrorists.
  3. Multipolar optics: India’s engagement at SCO signals balancing between West and Eurasia.

Key Outcomes of the 2025 SCO Summit

  1. Tianjin declaration: Strong language against cross-border terrorism, including condemnation of the Pahalgam attack (India) and Balochistan attacks (Pakistan).
  2. West Asian crisis: SCO united on humanitarian crisis in Gaza and condemned U.S.-Israeli strikes on Iran.
  3. China’s push: Xi proposed an SCO Development Bank.
  4. India’s push: Modi proposed a Civilisational Dialogue among SCO members.
  5. India’s reservation: Continued opposition to China’s Belt and Road Initiative (BRI) paragraph.

Missed Diplomatic Opportunities at the Summit

  1. Skipped SCO Plus: Indian Prime Minister did not attend the extended “SCO Plus” Summit, limiting engagement with neighbourhood and Global South leaders.
  2. Regional bonding gap: While optics were strong, substantive regional outreach was diluted.

Conclusion

The SCO Summit underscored India’s willingness to recalibrate its foreign policy in a changing world order. Modi’s visit after years of distance marked a thaw with China, greater Eurasian engagement, and assertion of India’s independent foreign policy despite U.S. pressures. However, missed opportunities in broader outreach and unresolved trust deficits with China remain cautionary notes.

Value Addition

Shanghai Cooperation Organisation (SCO)

Historical Background

  1. Successor to: SCO is the successor to the Shanghai Five, formed in 1996 between China, Kazakhstan, Kyrgyzstan, Russia, and Tajikistan.
  2. Formation: Established in 2001 in Shanghai by China, Russia, Kazakhstan, Kyrgyzstan, Tajikistan, and Uzbekistan.
  3. Expansion: India and Pakistan joined as full members in 2017; Iran became a member in 2023.
  4. Observers & Dialogue Partners: Afghanistan, Belarus, Mongolia, and others engage as observers; several countries (e.g., Turkey, Sri Lanka) are dialogue partners.

Strategic Importance of SCO for India

  1. Geopolitical Balancing: Provides a platform to engage with China and Russia while maintaining ties with the West (Quad, U.S.).
  2. Regional Security: Key forum for counter-terrorism cooperation, especially in light of cross-border terrorism and instability in Afghanistan.
  3. Eurasian Connectivity: Enhances India’s presence in Central Asia, a region rich in energy resources.
  4. Multipolar World Order: Strengthens India’s narrative of strategic autonomy and non-alignment in new form.

Key SCO Mechanisms

  1. Regional Anti-Terrorist Structure (RATS): Headquartered in Tashkent, focuses on counter-terrorism intelligence sharing.
  2. Economic Cooperation: Proposals for SCO Development Bank, regional trade, and connectivity projects (though India resists BRI-linked initiatives).
  3. Cultural and Civilisational Dialogues: Shared platforms for people-to-people exchanges, education, and cultural diplomacy.

India’s Challenges within SCO

  1. China Factor: Difficult to expand cooperation given border disputes and China’s Pakistan tilt.
  2. Pakistan Factor: Its membership often leads to diplomatic blockages on issues like terrorism.
  3. BRI Opposition: India consistently refuses to endorse the Belt and Road Initiative, creating friction.
  4. Russia-China Axis: Russia’s growing dependence on China may dilute India’s influence in the bloc.

Contemporary Relevance

  1. Energy and Trade: Central Asia is crucial for energy diversification; SCO provides a gateway.
  2. Geopolitical Flux: With U.S.-China rivalry and West Asia instability, SCO’s role in Eurasian stability gains importance.
  3. Soft Power Opportunity: India uses SCO to promote civilisational dialogue, yoga, Ayurveda, and cultural diplomacy.

PYQ Relevance

[UPSC 2021] Critically examine the aims and objectives of SCO. What importance does it hold for India?

Linkage: The article directly illustrates the objectives of SCO—counter-terrorism (Tianjin declaration), multipolarity, and Eurasian stability. It highlights India’s balancing act—reviving ties with China, opposing BRI, and pushing for civilisational dialogue. Thus, the SCO Summit outcomes reflect both the scope and constraints of SCO’s importance for India in strategic, economic, and security domains.

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