Subject: GroupingsXNeighbourhood

The SCO, evolved from the Shanghai Five (1996), was founded in 2001, as a Eurasian political, economic, and security organisation. In the recent summit, Laos joined as a partner, expanding SCO’s strength to 27 nations (10 members, 17 partners).

Aims and Objectives of SCO

Security Cooperation

Combat terrorism, separatism, and extremism (the “Three Evils”).

Enhance regional peace and border stability.

Economic Cooperation

Promote regional trade, connectivity, and energy integration.

Facilitate economic development and mutual prosperity.

Political and Strategic Cooperation

Strengthen multipolarity and collective global governance.

Counterbalance Western unilateralism.

Support UN-based international order.

Cultural and People-to-People Ties – Enhance educational, tourism, and youth exchanges through SCO University, Cultural Forums, and Youth Camps.

Critical Examination of SCO

China-Pakistan-Russia Axis creates a complex geopolitical matrix with conflicting interests, especially in Afghanistan.

China-Pakistan all weather relationship – Eg- India’s Defence Minister refused to sign the joint statement for omission of mention of Pahalgam terror attack

China’s Wolf warrior diplomacy, Chequebook diplomacy disrespect for international rules and sovereignty erodes SCO’s credibility.

Expansionist Agenda via BRI- Eg- China-Pakistan Economic Corridor (CPEC) passes through Indian territory (PoK) – opposed by India.

Regional Anti-Terrorist Structure (RATS) in Tashkent fails to act decisively against cross-border terrorism, particularly state-sponsored terrorism.

China’s use of veto in the UNSC to shield Pakistan-based global terrorists undermines anti-terror efforts.

Limited trade integration -intra-SCO trade remains below 10%.

Ideological mismatch -India’s democratic ethos vs authoritarian bloc politics.

Expansion Dilemma- SCO’s enlargement, including Belarus, raises its global profile but dilutes regional focus.

“identity crisis” – absence of enforcement mechanisms making it a mere talking shop. (Vivek Katju)

SCO is increasingly seen as an “anti-West” forum and entry of Iran in SCO has made the situation difficult for India.

Significance of SCO for India

Strengthens India’s strategic outreach in Central Asia.

India hosting the SCO Summit (2023) allowed it to promote democratic and rule-based values within a predominantly authoritarian grouping.

Expand trade footprint in Eurasia- Provides access to large Central Asian markets for agriculture, manufacturing, and pharmaceuticals.

Technological Cooperation- Opens avenues for collaboration in AI, quantum computing, and critical technologies.

Energy Diplomacy – Access to Central Asian uranium reserves and hydrocarbons strengthens India’s energy security.

Security Cooperation through RATS (Tashkent), enables counter-terror dialogue with China, Pakistan, and Central Asian states.

Connectivity Initiatives- Supports Chabahar Port and INSTC as key trade routes to Eurasia, reducing dependence on Pakistan-controlled routes.

Diplomatic Importance

Enhances India’s strategic autonomy in a multipolar world.

Acts as a bridge between South Asia and Eurasia.

Complements India’s “Connect Central Asia” and “Act East” policies.

Public Diplomacy- Enhances Track 2 diplomacy and cultural exchanges. Promotes academic, tourism, and youth linkages.

Cultural Cooperation- Deepens ties in cultural, linguistic, and energy sectors.

Way Forward

Use SCO for counter-terrorism diplomacy and regional stability.

Deepen energy cooperation and promote green connectivity.

Coordinate with Russia and Central Asia for balanced engagement vis-à-vis China.

Leverage SCO to push for multipolarity and inclusive growth.

SCO can help realise India’s ambitions on “multi-alignment”, “strategic autonomy” and becoming a “balancing power” in the world.

According to S. Jaishankar, SAARC has become a dead horse. In this context, BIMSTEC, established in 1997, to promote regional cooperation among South and Southeast Asian countries has emerged as a pragmatic alternative to SAARC.

BIMSTEC as a Parallel Organisation like the SAARC – Similarities

Regional Cooperation Objective to promote economic, technical, and social cooperation. Eg- SAFTA and BIMSTEC FTA negotiations

Developmental Focus: Emphasis on poverty reduction, trade, connectivity, and sustainable growth. Eg- BIMSTEC Transport Connectivity Master Plan

Consensus-Based Decision-Making: Eg- BIMSTEC Charter, 2022 was adopted only after all members’ approval

Institutional Mechanisms: Function through summits, ministerial meetings, and working groups. Eg- BIMSTEC Leaders’ Summit

Multi-sectoral Agenda: Cooperation in transport, energy, agriculture, health, environment, and security. Eg- SAARC 11 priority sectors and BIMSTEC 14 priority areas

Differences

BIMSTEC connects South and Southeast Asia, while SAARC is confined to South Asia.

SAARC includes Pakistan, leading to frequent political blockages. BIMSTEC is ‘SAARC-Pakistan’

SAARC is primarily a political and developmental forum, whereas BIMSTEC focuses on sectoral partnerships in economy, connectivity, and technology.

SAARC functioning is largely stalled, whereas BIMSTEC is expanding sectoral cooperation, adopted its Charter in 2022 and established a permanent Secretariat in Dhaka

SAARC has limited security cooperation, whereas BIMSTEC actively engages in counter-terrorism, cyber security, maritime security, and disaster management. Eg- BIMSTEC National Security Advisers’ Meetings

SAARC maintains Permanent Observer Status at the UN whereas BIMSTEC does not.

BIMSTEC Fulfilling India’s Foreign Policy Objectives

Regional Integration – Provides a Pakistan-free alternative to pursue regional cooperation and development.

Bridge to Southeast Asia: advances India’s Act East Policy. Eg- IMT Trilateral Highway.

Neighbourhood First and Indo-Pacific strategies – Increased connectivity, humanitarian cooperation, and development projects project India as a responsible power.

SAGAR Vision: Reinforces India’s role as a “Net Security Provider” in the Indian Ocean through cooperation in maritime security, disaster management, and coastal resilience.

Tapping Trade Potential in the Bay of Bengal through blue economy initiatives and port-led development.

Group’s cohesion and sustainability is key to realise ‘Vision 2030’ adopted in the recent 6th BIMSTEC summit.

The SCO, evolved from the Shanghai Five (1996), was founded in 2001, as a Eurasian political, economic, and security organisation.

Virus Conflict within SCO

China-India border tensions (Galwan 2020) – undermine mutual trust.

India-Pakistan rivalry over terrorism. Eg- Pahalgam Attack

The China-Pakistan-Russia axis creates an internal power imbalance.

China’s BRI expansionism – violates sovereignty. Eg- CPEC through PoK.

Russia-Ukraine conflict divides members’ geopolitical alignments.

Afghanistan instability – differing member approaches toward Taliban.

India’s Role in Mitigating Problems

Dialogue-based dispute resolution – SCO as a platform for engagement with China and Pakistan. PM Modi (2023): “SCO must not be divided by barriers of mistrust.”

Act as a Balancer to China – Supported by CAR and Russia

Enhancing Economic and Connectivity Alternatives – Promotes Chabahar Port and INSTC.

Pushes for energy partnerships and supply-chain diversification with Central Asia.

Encourages collaboration in AI, digital governance, and fintech. Eg- UPI as Model for CARs

Active role in RATS (Tashkent) to share intelligence on terrorism. Calls for zero tolerance against extremism and radicalisation.

Promotes respect for territorial integrity and international law. Advocates transparency in connectivity and infrastructure projects.

Supports inclusive multipolarity in global and regional affairs. Acts as a moderating voice against bloc politics.

Using India’s civilizational linkages to bridge ideological divides. Eg- Buddhist and sufi diplomacy with Central Asian nations.

Climate Cooperation – joint action on climate resilience, renewable energy, and green hydrogen initiatives.

SCO can help realise India’s ambitions on “multi-alignment”, “strategic autonomy” and becoming a “balancing power” in the world.

The region of Central Asia is located in the heart of Eurasia and denoted as Heartland by Helford Mackinder. It connects Europe, West Asia, South Asia, and Russia.

Significance of CARs in Regional and Global Geopolitics-

Energy Hub- CARs hold 4% of global gas and 3% of oil reserves. Turkmenistan (gas), Kazakhstan (uranium, oil).

Strategic Location- Land bridge between Europe, Russia, South Asia, and China, vital for Eurasian connectivity (BRI, INSTC, Ashgabat).

Security Buffer- Acts as a buffer against terrorism and extremism from Afghanistan.

Great Power Competition- Arena for China-Russia-US rivalry; China’s BRI investments exceed USD 60 billion.

India’s Engagement-

Diplomatic-

Connect Central Asia Policy – based on 4 Cs-Commerce , Connectivity , Consular and Community.

Institutionalized through India-Central Asia Summit (2022) and SCO membership (2017).

Economic-

Trade at USD 3 billion (2023);

Focus on energy, IT, and pharma

US$1 billion line of credit for development projects in infrastructure, IT, energy and agriculture in 2020.

Joined Ashgabat Agreement (2018) and INSTC.

Strategic-

Cooperation on counterterrorism (SCO RATS)

India operates Ayni Air Base (Tajikistan)

Invests via ONGC Videsh in Kazakhstan.

Challenges-

Connectivity gaps due to lack of direct access (Pakistan barrier).

China’s dominance under BRI and Russia’s influence in security.

Instability in Afghanistan affecting corridors.

Low trade volumes and implementation delays in projects like TAPI.

US sanctions on Iran hinder Chabahar-INSTC route.

Early finalization of FTA between India and the Eurasian Economic Union (EAEU) and air corridors can help to realise India’s energy security, connectivity, and strategic depth.