Jul 14, 2025
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The Shanghai Cooperation Organization (SCO) is a Eurasian political, economic, and security alliance founded in 2001. It originated from the “Shanghai Five” (China, Kazakhstan, Kyrgyzstan, Russia, Tajikistan) and was formalized as the SCO when Uzbekistan joined in 2001. With the inclusion of India and Pakistan in 2017, Iran in 2023, and Belarus in 2024, the SCO now has ten member states. Collectively, these members cover about 24% of the world’s land area and 42% of the global population. (Other sources similarly note roughly 40% of world population and 20–23% of world GDP are in SCO countries.) The SCO is not directed against any other country; its charter emphasizes sovereignty, non-interference and “Shanghai Spirit” principles of mutual trust and equality.
The Shanghai Cooperation Organization (SCO) is a permanent Eurasian intergovernmental organisation established on 15 June 2001. It originated from the ‘Shanghai Five’ security cooperation format (1996) among China, Kazakhstan, Kyrgyzstan, Russia, and Tajikistan. With the addition of Uzbekistan, it evolved into the SCO in 2001, formalised by the SCO Charter on 7 July 2002 .
The SCO aims to promote cooperation and mutual support in areas such as trade, investment, energy, transportation, and security.
The Shanghai Spirit is the core value of the SCO. It is about mutual trust, mutual benefit, equality, consultation, respect for cultural diversity, and the pursuit of common development among the SCO members.
The official working language of the SCO Secretariat is Russian and Chinese.
Aims & Key Objectives of the Shanghai Cooperation Organization
The SCO seeks to foster regional integration through a diverse set of aims and objectives:
Strengthen mutual trust and neighbourly relations among member nations .
Promote peace, security, and stability, especially against terrorism, separatism, and extremism (“Three Evils”).
Facilitate economic cooperation, trade, investment, and regional connectivity.
Encourage cultural, educational, and scientific exchange to foster greater mutual understanding .
Support the establishment of a democratic, fair, and rational new international order, reflecting SCO’s commitment to a multipolar world .
Table of content
SCO summit 2025 held in which country?: 25th Shanghai Cooperation Organization (SCO) Summit 2025, held June 25–26, 2025, in Tianjin, China.
Participants: Leaders of all SCO members, including the newly joined SCO’s 10th member Belarus, attended.
Core Agenda:
Strengthened counter‑terrorism cooperation—India emphasized unified response and rejected one-sided references.
Discussions on regional security, economic integration, digital economy, and sustainable development.
India’s Role:
Stressed no tolerance for “epicentres of terrorism,” insisting on clear condemnation of attacks like in Pahalgam.
Defence Minister Rajnath Singh delivered a veiled critique of Pakistan during the SCO Defence Ministers’ meeting.
Preparatory Events:
Held key meetings on sustainable development and digital economy ahead of the main Summit.
Outcome:
No joint communique at the Defence Ministers’ meeting due to differences over terrorism wording.
The summit reflected both cooperation and tensions inherent to SCO members, as per India’s stance.
The organisation is structured into three tiers: Members, Observers, and Dialogue Partners.
Category | Countries | Role & Significance |
Member States | China, India, Pakistan, Russia, Kazakhstan, Kyrgyzstan, Tajikistan, Uzbekistan, Iran, Belarus | Full members with voting rights in major SCO bodies (e.g., Heads of State Council). Belarus joined as the 10th member in July 2024 . |
Observer States | Afghanistan, Mongolia | Participate in meetings but don’t hold voting rights. Observers like Afghanistan help address shared threats (e.g. terrorism). |
Dialogue Partners | Armenia, Azerbaijan, Cambodia, Nepal, Sri Lanka, Turkey (+ Saudi Arabia, Egypt, Qatar invited recently) | Engage in specialist forums (e.g. economic, cultural, energy), paving the way for deeper ties. |
How does SCO Work?
Heads of State Council: SCO’s top decision-making body, meets annually, decisions by consensus/unanimity .
Heads of Government Council & Council of Foreign Ministers: Focus on economic and diplomatic issues respectively.
Permanent Bodies:
Secretariat (Beijing) implements SCO policies .
RATS (Tashkent) coordinates anti-terror actions
The table consists of several internal organizations:
Institution / Body | Composition | Major Functions |
Council of Heads of State (HSC) | Presidents of all member countries | – Supreme decision-making body, meets annually. |
Council of Heads of Government (CHG) | Prime Ministers / Heads of Government | – Approves SCO budget. |
Council of Foreign Ministers (CFM) | Foreign Ministers of member countries | – Prepares for HSC meetings. |
Council of National Coordinators (CNC) | National coordinators from each member state | – Supervises day-to-day implementation and coordination of SCO activities . |
Conferences of Heads of Specialized Agencies | Ministers of defence, economy, transport, culture, etc. | – Manages sector-specific cooperation: defence, law enforcement, disaster management, transportation, culture . |
Secretariat (Beijing) | Permanent executive organ headed by Secretary‑General | – Provides organizational & technical support. |
Regional Anti-Terrorist Structure (RATS) | Executive Committee in Moscow; national focal points | – Coordinates counter-terrorism, anti-separatism, and extremism operations. |
SCO Business Council | Representatives from member countries’ business communities | – Promotes business-to-business dialogue. |
SCO Interbank Consortium | Central banks from member state & some observers | – Provides financing for joint development, infrastructure, energy projects. |
Economic Initiatives of SCO
In 2003, the SCO agreed on a framework for regional trade, energy cooperation, and a proposed free trade area.
2009: China pledged US $10 billion to assist SCO economies during the global financial crisis.
The SCO Interbank Consortium (est. 2005) finances infrastructure and energy projects, including rail, road, and pipeline connectivity across Central and South Asia.
SCO actively promotes local-currency trade; a roadmap to increase national currency usage in mutual settlements was adopted in 2022, with work continuing into 2024–25 .
The SCO University exchange program fosters educational, technical, and cultural ties among member states.
Security Cooperation
The security agenda centers on the “Three Evils”: terrorism, separatism, and extremism.
Since the 2004 Tashkent summit, the SCO has held “Peace Mission” joint counter-terror drills and created RATS for intelligence-sharing.
In 2007, the SCO signed a pact with the CSTO, enhancing cooperation on security and drug trafficking.
June 2025, Qingdao defence meet brought all 10 SCO members including SCO new member Belarus together—the first under China’s 2024–25 chairmanship—to discuss regional security and counter-terror measures.
SCO’s intelligence-sharing and joint exercises help foil terror plots and tackle cross-border crime effectively.
Cultural Exchange & Soft Power
Since the 2005 SCO Arts Festival, culture ministers have met regularly to support arts, heritage, youth forums, and tourism under the “Shanghai Spirit.”
The Astana Declaration (July 2024) expanded cooperation in cultural tourism (gastronomy, medical, eco-tourism) and endorsed a Cultural Exchange Calendar.
Projects include Art Exhibitions for youth (e.g., 2024 event in Islamabad) and the establishment of a Digital Education Association and Innovation Partnership Week .
SCO also fosters student exchange, research collaboration, linguistic diversity, and a shared educational infrastructure.
The Shanghai Cooperation Organization (SCO) membership has expanded in multiple phases, reflecting its evolving strategic footprint and regional importance.
Membership Phases
Original Members (2001): China, Kazakhstan, Kyrgyzstan, Russia, Tajikistan, Uzbekistan-initially part of the “Shanghai Five.” Eventually formalized into SCO in June 2001.
2017 Expansion: India and Pakistan joined as full members during the Astana summit, increasing the membership to eight.
2021–23 Expansion: Iran, having applied in 2008 and obtained observer status in 2005, was approved in September 2021 and became a member at the July 2023 SCO summit in New Delhi/Kazakhstan .
Belarus (SCO’s 10th Member): Belarus transitioned from observer (2015) to full membership at the 24th SCO summit in Astana, July 2024-becoming the organization’s first European member
Strategic Implications
Geographic Reach: Expansion to Iran and Belarus takes SCO’s influence from South and Central Asia into West Asia and even Europe .
Population & Economy: Combined, SCO members command ~40% of global population, 24% of landmass, and around 23% nominal GDP (36% PPP).
Diverse Interests: SCO new members add varied economic strengths-Russian alliance in Belarus, Iranian energy, India’s markets-augmenting SCO’s resources but posing consensus challenges.
The Shanghai Cooperation Organization (SCO) offers India multifaceted opportunities in counter-terrorism, connectivity, economic cooperation, multilateral diplomacy, and regional stability. This enhanced section uses insights from authoritative sources for a polished UPSC-ready narrative.
1. Counter-terrorism & Security Cooperation
The SCO prioritizes combating the “Three Evils”: terrorism, separatism, and extremism, via its Regional Anti‑Terrorist Structure (RATS) headquartered in Moscow (previously Tashkent) – an effective intelligence-sharing mechanism.
For India, contending with cross-border terrorism and Pakistan's proxy tactics makes this cooperation vital. India presses for stronger SCO action against state-sponsored militants .
2. Regional Stability in Central Asia
As a large Eurasian bloc covering ~40% of the world population, SCO plays a stabilizing role in Central Asia .
India's border with Afghanistan and engagement via SCO helps potentially shape the region's security landscape.
3. Connectivity & Infrastructure
SCO’s emphasis on connectivity aligns with Indian interests, supporting projects like the International North–South Transport Corridor (INSTC), Chabahar port, and alignment with the Ashgabat Agreement.
India contests Pakistan-led BRI projects (like CPEC) within SCO, asserting sovereignty and pushing projects respectful of national borders .
4. Economic Cooperation & Market Access
The SCO provides India access to resource-rich members (Central Asia, Iran) and facilitates engagement in energy markets-vital for India's energy security.
India leverages SCO to expand trade investment opportunities with member & dialogue partners, fulfilling broader Connect Central Asia policy goals.
5. Multilateral Diplomacy & Strategic Voice
India uses SCO as a diplomatic platform to engage with both China and Pakistan in a multilateral context despite bilateral tensions.
The organization reinforces India’s multialignment strategy—balancing Western and non-Western blocs—avoiding over-dependence on a single global axis .
6. Boosting India–Central Asia Relations
SCO closely complements India’s Connect Central Asia initiative, supporting ties in trade, culture, and infrastructure. During the 2023 summit, India advanced this policy within SCO dialogues .
India’s diplomatic outreach-through SCO visits, trilateral projects (India-Iran-Uzbekistan), and high-level events-strengthens this regional bond.
Aspect | Challenges faced by India in SCO | India’s Opportunity in SCO |
1. Counter-terrorism & Security | India–Pakistan friction and India–China rivalry affect consensus in SCO meetings and RATS operations. | Using RATS, India enhances terror intelligence-sharing and advocates joint counter‑terror exercises under SCO frameworks. |
2. Unanimity Rule | Decision-making in SCO is slow due to unanimity, often stalling progress on key issues at SCO Summit 2024 or future SCO Summit 2025. | As host of SCO Summit 2025 (in Tianjin, China), India can lead agenda-setting and streamline decisions during its tenure. |
3. Economic Disparities | The large economic gap between China and smaller Central Asian SCO members hinders cohesive economic strategy. | India promotes projects like INSTC and Chabahar to integrate and reduce Eurasian economic disparities. |
4. Currency Dependence | Heavy reliance on the US dollar restricts financial flexibility among SCO members upsc. | India pushes for rupee-based trade settlements, promoting de-dollarization and economic resilience across SCO. |
5. Overlapping Blocs | Membership overlaps (e.g., CSTO, CIS, BRICS) create conflicting mandates for SCO members. | SCO allows India to strengthen non-aligned leadership and present a distinct Eurasian multilateral platform, balancing China’s BRI influence. |
6. Institutional Weakness | Secretariat and RATS lack enforcement power; institutional capacity remains limited. | India’s 2023 SCO presidency introduced new working groups (e.g. startups, traditional medicine), signaling gradual but targeted institutional reforms. |
7. Rotating Chairmanship | Dominance of China and Russia can marginalize smaller SCO members during their terms. | India’s 2023–24 rotating presidency enabled it to set priorities on the environment, trade, and digital connectivity—leveraging chairmanship for influence. |
8. Language Barriers | Use of official languages (Russian, Chinese) may limit full participation from India and other members. | Advocacy for English as a working language enhances inclusivity, benefiting India and other non-Russian/Chinese speakers. |
9. Security vs Economic Focus | SCO’s initial focus on “Three Evils” (terrorism, separatism, extremism) overshadowed economic cooperation initiatives. | India expanded SCO’s agenda in 2023 to include digital infrastructure, innovation, green energy, and trade—shifting it to a well-rounded regional platform. |
10. Geopolitical Positioning | China–Pakistan axis within SCO risks framing the organization as anti-West or China-centric. | India promotes the “Asian NATO” concept—emphasizing SCO as a cooperative dialogue platform, not a military bloc, showcasing strategic autonomy through balanced diplomacy. |
Diverging Geopolitical Priorities:
Member states often pursue conflicting national interests – for example, India vs Pakistan tensions, and competition between China and Russia for influence in Central Asia.Consensus-based Decision Making:
The SCO functions on the principle of unanimity, which makes the decision-making process slow and often leads to diluted outcomes rather than bold collective action.Economic Disparities among Members:
Wide differences in economic size and development (e.g., China’s large economy vs smaller Central Asian economies) make it difficult to implement uniform economic policies.Internal Rivalries:
Historical mistrust and unresolved disputes among members (notably India–Pakistan border issues and recent India–China tensions) affect cooperation and trust.Limited Institutional Capacity:
Despite having bodies like the Secretariat and RATS, SCO lacks strong permanent institutions and enforcement mechanisms compared to organizations like the EU.Language and Cultural Barriers:
Russian and Chinese are the official languages, which sometimes limits full participation and understanding, especially for South Asian members.Imbalanced Influence:
China and Russia, as founding members and major powers, often dominate discussions, which can marginalize the voices of smaller Central Asian countries.Security vs Economic Focus Dilemma:
The SCO initially focused heavily on counterterrorism; shifting towards economic cooperation has been slower and less coordinated.
As a major regional grouping, it facilitates economic projects (energy pipelines, rail links) and cultural exchange programs.
Platform for Dialogue:
Provides a multilateral forum where even rival countries (e.g., India and Pakistan) can regularly meet and communicate, reducing risks of conflict.Regional Connectivity Projects:
Supports infrastructure projects like railways, pipelines, and highways linking South Asia, Central Asia, Russia, and China, boosting trade.Counter-terrorism Cooperation:
Through RATS, SCO facilitates intelligence sharing and joint exercises, which help in tackling terrorism, extremism, and separatism.Energy Cooperation:
Members can collaborate on energy pipelines and power grids to ensure stable energy supplies and diversify energy markets.Cultural and Academic Exchange:
Initiatives like SCO Arts Festival, youth forums, and university exchanges foster better understanding and people-to-people ties.Trade in Local Currencies:
Promoting trade settlements in national currencies can reduce dependence on the US dollar and help stabilize member economies.Balanced Multipolar World:
By promoting multilateralism, SCO contributes to balancing global power, offering an alternative voice in world affairs.Development Funding:
Mechanisms like the SCO Interbank Consortium help finance development projects, especially for smaller member economies.Inclusive Expansion:
SCO new members like Iran and Belarus extend their strategic footprint, bringing in new resources and markets, and strengthening Eurasian integration.
To strengthen Shanghai Cooperation Organization’s relevance and mutual benefit, analysts suggest several priorities:
Active Indian Diplomacy: As rotating President (2023), India can push agendas like expanded connectivity and trade. Open dialogue with neighbors (including Pakistan) over SCO can build trust.
Local Currency Trade: SCO members are exploring trade settlements in national currencies. India is encouraging rupee-based trade to cut dependence on the US dollar and reduce exchange risks.
Regional Integration (“Asian Century”): The SCO can be an engine for Asia-centric growth. India should leverage SCO ties to integrate into Central Asian markets, energy projects (like TAPI gas pipeline), and supply chains.
Conflict Resolution through Dialogue: The SCO’s consensus framework means disputes (e.g. India-China border issues) should be managed through diplomatic dialogue within the organization rather than escalation.
Security Collaboration: SCO joint exercises and anti-terror cooperation should continue. Indian analysts sometimes refer to the SCO as a form of “Asian NATO” (though it is not a mutual defence pact), emphasizing regular defence consultations
Combating Threats: Ongoing SCO focus on terrorism, extremism, drug and arms trafficking remains crucial. India can work with SCO partners to revive initiatives like the Afghanistan Contact Group under SCO.
People-to-People Links: Tourism, cultural festivals, and student exchanges under SCO can boost mutual understanding. Highlighting shared history (e.g. Silk Road heritage) will attract tourism and trust.
SCO UPSC CSE Prelims 2022
Q. Consider the following:
1. Asian Infrastructure Investment Bank
2. Missile Technology Control Regime
3. Shanghai Cooperation Organization
Indian is a member of which of the above?
a) 1 and 2 only
b) 3 only
c) 2 and 3 only
d) 1, 2 and 3
Correct Answer: d) 1, 2 and 3
UPSC Mains 2021 (GS2): “Critically examine the aims and objectives of the Shanghai Cooperation Organization. What importance does it hold for India?”.
Q1: What is the Shanghai Cooperation Organization (SCO)?
The SCO is a Eurasian political, economic, and security organization founded in 2001. It includes key Asian powers and promotes regional cooperation among SCO members.
Q2: Who are the current SCO members?
As of 2024, SCO members include China, India, Pakistan, Russia, Central Asian nations, Iran, and SCO’s 10th member, Belarus.
Q3: What is the SCO Summit ?
The SCO Summit is the annual meeting of heads of state where strategic, security, and economic policies are discussed and adopted.
Q4: What happened at the SCO Summit 2024 ?
At the SCO Summit 2024 in Astana, Kazakhstan, Belarus joined as the SCO’s 10th member. Key topics included regional security, counterterrorism, and connectivity.
Q5: SCO Summit 2025 held in which country?
The SCO Summit 2025 will be hosted by China in Tianjin, as China holds the chairmanship for the 2024–25 term.
Q6: Why is the Shanghai Cooperation Organization important for India?
The SCO enhances India’s regional ties, aids in counterterrorism, energy access, trade, and gives India a platform to balance ties with China and Russia.
The Shanghai Cooperation Organization (SCO) has emerged as a key Eurasian multilateral forum that blends security, economic and cultural cooperation. Its member states together represent a significant share of global geography, population and GDP. The SCO has made concrete progress on counterterrorism and connectivity, and provides India a valuable platform for engagement in Central Asia. Although internal differences and external pressures pose challenges, the SCO’s expanding membership (including Belarus as the SCO’s 10th member) demonstrates its growing clout. As the SCO continues to evolve – with major summits in Kazakhstan (2024) and China (2025) – it will likely play an increasingly important role in Asian regional order. For UPSC preparation, understanding SCO’s structure, objectives and strategic implications is essential for topics in international relations and current affairs.
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