India – Russia

What Russia Wants:

1. Economic Support: Russia seeks economic support from China to counter the impact of Western
sanctions, which have negatively affected its economy. China's investment and trade have
become crucial for Russia's economic stability.
2. Military Support: Russia has requested military equipment and economic assistance from China.
This assistance can aid Russia in various ways, including its military operations and technology
modernization.
3. Diplomatic Support: Russia benefits from China's diplomatic support, as China refrains from
condemning Russia's actions in Ukraine. China's alignment with Russia's narrative helps deflect
international criticism.
What China Wants:
1. Like-Minded Ally: China views Russia as a like-minded ally in challenging U.S. and Western
dominance. The two countries aim to cooperate against actions that they perceive as hegemony,
domination, and bullying.
2. Security Cooperation: China desires cooperation with Russia to address security challenges. Joint
efforts to enhance security help both nations counter perceived threats to their sovereignty and
interests.
3. Advanced Weapons and Military Exercises: China aims to modernize its military capabilities by
purchasing advanced weapons from Russia. Additionally, joint military exercises between the two
countries strengthen their strategic partnership.
1. Trade and Economic Relations:
• Trade is a significant form of cooperation between Russia and China. Mutual trade has increased substantially
over the years, particularly during the period when Russia's relations with Western countries were strained.
• Economic ties between the two nations have expanded due to various factors, including geopolitical shifts and
changing global dynamics.
2. Gas Deal and Energy Cooperation:
• A notable development is the $400 billion gas deal, where Russia agreed to supply China with a substantial
amount of natural gas over 30 years.
• Additionally, agreements like the Power of Siberia-2 (Altai Gas Pipeline) have further solidified energy
cooperation, contributing to increased trade.
3. Belt and Road Initiative and Eurasian Economic Union:
• Russia and China are moving toward linking the Belt and Road Initiative and the Eurasian Economic Union,
showing a desire for greater regional connectivity.
• Both countries have aligned their positions on certain international issues and principles, such as supporting
the One-China principle and opposing Taiwan's independence.
4. Military Cooperation:
• Russia has sold advanced military equipment, including fighter aircraft and missile systems, to China.
• This cooperation includes the supply of advanced weaponry like the S-400 missile-defense system and Su-35
fighter jets.
5. Energy Transactions and Currency:
• China has continued to purchase Russian energy at discounted rates and aims to conduct transactions using
their respective currencies (rubles and Chinese renminbi) to circumvent Western sanctions.
6. Regional Trade and Dependence:
• Many Russian regions have set new trade records with neighbouring Chinese provinces, reflecting the growing
economic interdependence between the two countries.
ISSUES

Security Alliance and Ideological Affinity:

• There is no formal security alliance between Russia and China, and their ideological affinity is
more transactional than deeply rooted.

Economic Disparity:
• Russia's economy is significantly smaller than China's, which affects their bargaining power and
the potential for equal partnership.

Crimea and USSR Legacy:

• China has not ratified Crimea's accession to Russia, and Russia seeks to regain its former glory as
the USSR, making it reluctant to accept a junior partner status.

Economic Interests:
• China and Russia both prioritize their economic interests, particularly regarding trade relations
with the European Union and other regions.

Impact of Ukraine War:

• The Ukraine war has complicated the relationship between China and Russia due to its
geopolitical implications and impact on global dynamics.
China's Geo-Economic Interests:
• China's broader geo-economic interests, including its Belt and Road Initiative, are intertwined with
regions affected by the Ukraine conflict.

Impact on International Dynamics:

• Russia's victory in Europe could have had significant global consequences, affecting perceptions of
U.S. decline and reshaping global power dynamics.

Western Unity and Alliances:

• The Ukraine conflict has facilitated the resurgence of Western unity under American leadership
and led to the strengthening of alliances with nations like Australia and Japan to counter both
Russian and Chinese security concerns.

Chinese Business Concerns:

• Chinese firms are cautious about deepening business ties with Russia due to the possibility of
secondary sanctions and the associated risks.
IMPACT ON INDIA
1. Strategic Predicament for India:
• The alliance between China and Russia presents a challenge for India. China has the ability to
increase military pressure on India's disputed borders, while India relies on Russian military
supplies. This dynamic places India in a delicate position.
2. Russian Partnership and Strategic Autonomy:
• India's historical partnership with Russia was considered crucial for its "strategic autonomy."
However, increasing arms dependence on Russia constrains India's freedom of action in
international affairs.
3. Russian Opposition to QUAD:
• Russia's opposition to the QUAD (Quadrilateral Security Dialogue) aligns with China's stance and
views the QUAD as an Asian NATO aimed at containing China's influence.
4. Criticism of INDO-PACIFIC:
• Russia is critical of the term "Indo-Pacific," seeing it as a return to Cold War mentality and a way to
contain both Russia and China's influence in the region.
5. Complicated Relationship with the US and Allies:
• India's alliance with the U.S. and its allies, including efforts to restore regional balance of power, is
complicated by the emergence of the Sino-Russian alliance.

The Sino-Russian alliance has implications for India's strategic choices and diplomatic engagements.
India's longstanding partnership with Russia, coupled with its growing engagement with the U.S. and
its allies, requires careful navigation to balance its interests and maintain its strategic autonomy while
managing the evolving geopolitical landscape.
India and Russian relationship are today guided under the framework of Special and Privileged
Strategic Partnership.
Russia an “all-weather friend” is aimed at ensuring that Delhi and Moscow can carry forward
their engagement despite the looming China factor and India’s deep and growing ties with the
US and Europe.

In the recent visit of Indian PM to Russia, Mr. President Vladimir Putin conferred Russia’s
highest civilian honour the "Order of Saint Andrew the Apostle” on Prime Minister Shri
Narendra Modi for his distinguished contribution to the development of Special and Privileged
Strategic Partnership between India and Russia.

AREAS OF COOPERATION
Diplomatic Engagement
•Regular Bilateral Engagement: Revival of annual bilateral summit between the leaders and
close cooperation is also highlighted by India's Chairmanship of SCO and G20 in 2023 and
Russia's Chairmanship of BRICS in 2024, has deepened the bilateral partnership.
•India has carefully avoided at regional multilateral forum to criticize Russia for ongoing Russia-
Ukraine War and at the same time recommended dialogue as a mechanism to resolve disputes.
Exponential Trade Growth
•IRIGC-TEC Session: Both nations welcomed the 24th Session of the India-Russia
Intergovernmental Commission on Trade, Economic, Scientific, Technical, and Cultural
Cooperation (IRIGC-TEC) and the India-Russia Business Forum.
•Investment Forum: The first India-Russia Investment Forum promoted Russian business
participation in India's "Make in India” and "Atmanirbhar Bharat” programs.
•Trade Surge: Despite the war and sanctions, trade grew from $10 billion pre-February 2022 to
$65.7 billion in the last financial year. In the first quarter of this year, trade reached $17.5
billion, with a target of $100 billion by 2030.
•Non-Tariff Barriers: Both sides aspire to eliminate non-tariff trade barriers and discuss the
possibility of an EAEU-India Free Trade Area.

Focus on Connectivity
•Key Projects: Implementation of the Chennai-Vladivostok (Eastern Maritime) Corridor and the
International North-South Transport Corridor, along with the Northern Sea Route potential,
were emphasized.
Energy Cooperation
•Coal Sector: There is ongoing cooperation in the coal sector, with plans to increase coking coal
supplies to India.
•Nuclear Power: Progress continues in constructing nuclear power plant units at Kudankulam,
adhering to the set schedules.

Space Cooperation
•ISRO-Roscosmos Partnership: Enhanced collaboration in peaceful space usage, including
human spaceflight programs, satellite navigation, and planetary exploration.

Defence Cooperation
•Joint Manufacturing: Under the Intergovernmental Commission on Military and Military
Technical Cooperation (IRIGC-M&MTC), both countries agreed to joint manufacturing in India
of spare parts and other defense equipment under the Make-in-India program, including
technology transfer and setting up joint ventures for export.

Cultural Connect
•Visa Formalities: Simplified visa procedures and e-Visa introduction by both countries. Plans
for "Cross/Multi-Sectoral Years of Exchange” to enhance people-to-people exchanges, and
foster economic, educational, scientific, and civil society connections.
Reforming Multilateralism
•UNSC Reform: Leaders reiterated calls for comprehensive UNSC reforms to reflect
contemporary global realities, with Russia supporting India’s permanent membership in a
reformed and expanded UNSC.
•War Stance: India has maintained a sympathetic stance towards Russia during the war,
avoiding condemnation and adverse voting in the UN, and disregarding Western sanctions
threats on energy imports from Russia.

Cooperation over Non-Traditional Security Concerns

•Counterterrorism: Both leaders condemned terrorism and violent extremism, calling for zero
tolerance and the adoption of the Comprehensive Convention on International Terrorism within
the UN framework.
•Security Dialogue: Highlighted the importance of security dialogues at the level of National
Security Advisors and National Security Councils, facilitating greater strategic understanding
and coordination on bilateral, global, and regional issues.

Regional Forums
•Strengthening Regional Cooperation: Both nations stressed the importance of cooperation
within regional fora to enhance regional peace and security, including the East Asia Summit,
ASEAN Regional Forum on Security (ARF), and ASEAN Defence Ministers Meeting Plus (ADMM-
Plus).
Key Issues in India-Russia Relations
Changing Patterns in Defence Partnership
•Historical Context: Military-technical cooperation has been crucial, with India being a major
client of Russian arms.
•Recent Shifts: India's imports from Russia have decreased by 37% over the past decade. In
2022, India halted the acquisition of Russian Ka-31 helicopters and faced delays in other
defense contracts.
•Impact of Ukraine Conflict: Sanctions and the conflict have led India to seek alternative
defense partners and technologies.
Trade Dynamics and Imbalances
•Stagnant Trade Before 2022: Trade fluctuated around $10-13 billion.
•Surge in 2022-2023: Trade increased to $49.4 billion, driven by Indian imports of Russian crude
oil.
•Trade Imbalance: Despite high trade figures, Indian exports to Russia remain around $3 billion,
indicating a significant imbalance.
Challenges and Opportunities
•Caution Among Indian Businesses: Western sanctions have made Indian firms like Tata Steel
and Infosys cautious, leading to their withdrawal from Russia.
•Negotiations: Ongoing discussions for a new Bilateral Investment Treaty and an India-Eurasian
Economic Union (EAEU) Free Trade Agreement (FTA) face slow and uncertain progress.
•Sanctions Impact: Financial transactions are disrupted due to Russian banks being excluded
from the SWIFT system. Alternatives like using the Indian rupee have led to unutilized funds in
Russia.
Illusion over Indo-Pacific Connect
•Struggles Since 2019: Efforts to realize Indo-Pacific cooperation, such as the $1 billion credit
line for the Russian Far East and the Vladivostok-Chennai maritime corridor, have stalled.
•Geopolitical Tensions: Russia’s suspicion of the Indo-Pacific concept and broader geopolitical
tensions have strained relations. Military diplomacy has also declined, with limited joint
exercises.

Cooperation in Eurasia
•Impact of Ukraine Invasion: Russia’s invasion has destabilized its "Greater Eurasia
Partnership," isolating it from many European and Asian nations, except Iran and North Korea.
•Central Asia Dynamics: The region is increasingly aligning with China, complicating India's
security cooperation plans with Russia.
•.
•Shanghai Cooperation Organization (SCO): India's involvement has not led to significant
breakthroughs, prompting independent engagement with Central Asia.
•Afghanistan Coordination: Despite some cooperation on diplomatic initiatives and interactions
with the Taliban, differing views on the Taliban’s legitimacy and the US role in Afghanistan
create a cautious relationship.

Russia-China Bonhomie
•Convergence on Foreign Policy: Both countries share anti-American foreign policy stances and
a vision for a multi-polar world and Russian opinion regarding QUAD as ASIAN NATO
•Economic Dependence: Russia's economy relies heavily on oil and gas exports, with China
being the largest importer. This economic dependence strengthens their bilateral ties.
•Belt & Road Initiative: Russia supports China's Belt & Road initiative, further cementing their
cooperation.
Defence and Energy Exports to China
•Arms Exports: Close to 77% of China's arms imports came from Russia during 2016-2020.
•Energy Exports: China is a major buyer of Russian oil and gas, deepening their economic
relationship.
 India – Russia
What needs to be done –

• Russian policymakers are obsessively preoccupied with Russia’s ‘status’ rivalry with the U.S. And
this largely impacted Russia's view of India-China relations.

• India should pursue the normalisation of relations between US and Russia, while diminishing
Russia's propensity to coordinate its South Asian policies with China.

• Russia might not always be the most powerful player, but it retains significant capacity to act both
as a spoiler and a facilitator in Eurasia and has seen a resurgence of influence in West Asia.

• India and Russia will continue to pursue their respective trajectories in world affairs, coordination on
mutually beneficial issues will be vital in this period of flux in the global system.

• After Taliban’s takeover, leveraging relations with Russia can be a key strategy for India in the
Afghanistan. EX- NSA talks between India , Russia, Central Asian republics etc.

• There is a need for improving Economic cooperation – Improving logistics – FTA with EAEU etc.
• Besides defence cooperation should be nurtured on the lines of joint development and technology
transfer and indigenisation.
 India and AFRICA

Geopolitical

Geostrategic Significance of
AFRICA Economic

Energy Security
 India and AFRICA

Disturbed Africa

Economic
engagement is low Missing
Synchronization

ISSUES

Delays in Bureaucratic
Project delivery Hurdles
 India and AFRICA

SAGAR and IONS

ITEC
Defence Dialogue

Initiatives

AAGC Ten Guiding

principles
Q. India's outreach to Egypt, highlights broader goals of its foreign policy towards North Africa.
Comment.

In the recent times India and Egypt have solidified their ties by forming a strategic partnership and this
can be seen from a broader geopolitical perspective as Egypt can act as a gateway to both Europe and
Africa, making it a crucial partner in India's foreign policy pursuits, especially in Northern and Western
Africa, which had been relatively untouched by Indian foreign policy previously.
India aims to deepen its strategic engagement with African nations to enhance its global standing and
geopolitical influence. It is now seen as A continent due to Changing scenarios

• Geo-strategic: Securing Sea lanes, countering China's "String of Pearls" strategy, and addressing
Islamic fundamentalism concerns, crucial for regional stability and safeguarding India's interests.

• Geo-economic: Africa provides vital resources like oil, pulses, and raw materials, offers a growing
market with high per capita income and potential in the automobile sector, and fosters
complementarity in trade between India and Africa.

o Diversifying energy sources and ensuring energy security are vital goals of India's foreign policy
towards Africa. It helps reduce dependence on other regions.
Q. India's outreach to Egypt, highlights broader goals of its foreign policy towards North Africa.
Comment.

• Geopolitical: Africa's significance lies in promoting South-South cooperation, and bolstering India's
Indo-Pacific presence, offering strategic advantages and diplomatic leverage in the region.

o India seeks Africa's support in international forums, particularly in organizations like the United
Nations, to advance shared interests and influence global decision-making

• Democratizing Development: Africa's improving political governance, rapid population growth,

urbanization, better education, skills, and young demographics make it a promising partner for
India's economic and developmental interests.

India’s long-term prospects are closely tied to the success of its Africa strategy. Strengthening ties
with Egypt is a step in the right direction. It is important that India does not play a game of catch-
up with China. Rather it is more important to leverage India’s own unique strengths, such as its
contribution to capacity building, promotion of entrepreneurship, small and medium scale
industry, and digital connectivity.
 India Africa Defence dialogue was organized recently in Gandhinagar, Gujarat

Maritime security Boost

Defence
Geo-Political Exports

Importance

Non-Traditional
Security Peacekeeping
Concern Mission
 ► CHINA IN AFRICA

Objectives of China in Africa:

Critical Resources
“Securing Essential Minerals: China's interest in Africa is driven by its need for critical
natural resources such as cobalt, platinum, and coltan which are crucial for China's
emerging tech industry and China has established refineries in Africa for rare earths and
minerals which ensures a more direct and efficient access to these vital resources.

Geopolitical Aspirations
Leveraging African Influence: Africa's significant representation in the United Nations
provides China with an opportunity to influence international resolutions, especially on
contentious issues such as the South China Sea. China benefits from the vocal support of
African nations on the global stage, particularly regarding key policies such as the "One
China" policy concerning Taiwan and Hong Kong.
20
 ► WORLD ORDER

Geo-Economic Aspirations
Promoting Chinese Currency: China's encouragement for African countries to trade in the
“Chinese currency (Renminbi - RMB) is part of a larger strategy to increase the global use of
the RMB. This is further strengthened by promotion of cross-border yuan-based "panda
bonds" which allows foreign governments to raise funds from China at lower interest rates,
enhancing economic ties and financial cooperation between China and African nations.

Commercial Gains
Market Expansion: Africa's status as a net importer of finished goods from China provides
a lucrative market for Chinese exports. China benefits from the consumption of its
products in Africa and also takes advantage of Africa's young population and relatively
cheap labour force, not only for domestic production but also to support Chinese exports
globally.
21
 ► CHINA IN AFRICA

Analysis of Partnership: (Yin and Yang of partnership)

Yang (Positives of the relationship)
“Resource-Driven Investment: China's investment in Africa has been primarily fuelled by its
quest for natural resources. This approach has allowed African nations to leverage their
resource wealth for economic development.

Foreign Direct Investment (FDI) and Infrastructure Development: China's significant FDI in
Africa has been instrumental in creating infrastructure and industrial parks. This
investment has played a crucial role in providing employment opportunities and
boosting economic development and has aligned well with the idea of "Made in Africa,"
as it contributes to the growth of local industries and manufacturing capabilities.

Agricultural Advancements: The partnership has extended to the agricultural sector,

where China has helped African countries achieve self-sufficiency through22 the
introduction of advanced hybrid crops.
 ► WORLD ORDER

Non-political Conditionality: A distinctive feature of the China-Africa partnership is China's

reluctance to impose political conditions on its development aid. This differs from the
“ approach taken by Western countries this has fostered a sense of trust between China
and African nations, with the partnership often being described as a 'win-win' scenario.

Mutual Trust and Cooperation: The lack of political conditions on aid has allowed African
countries greater autonomy in pursuing their development goals. This approach is seen
as a departure from traditional donor-recipient relationships. And has perceived mutual
trust between China and African nations.

23
 ► WORLD ORDER

Yin (Negatives of the relationship)

“DebtTraps and Economic Risks: China's investment practices may be predatory, leading to
debt traps for African nations. This is exemplified by debt crises in countries like Zambia,
Angola, and Djibouti, where Chinese loans have been tied to mining concessions.
Further there are also concerns that China's strategy of providing low-interest, long-
term loans may result in African nations becoming economically dependent on China,
leading to what some scholars characterize as neo-colonialism.

Geo-Political Aspirations: China's 'non-interference' rhetoric is seen as providing a

diplomatic shield to authoritarian regimes in Africa. Thus oppressive regimes remain in
power without facing external scrutiny, as long as they maintain friendly relations with
China.
24
 ► WORLD ORDER

Limited Involvement of Local Stakeholders: Chinese investments often involve direct

dealings with governments, side-lining local communities and stakeholders. This lack of
“ involvement can result in projects that may not align with the needs or interests of the
local population and has raised concerns about the social and environmental impact of
Chinese projects in Africa.

Labour Practices and Working Conditions: Chinese investments have been criticized for
their treatment of labour, including low wages and poor working conditions. The focus
on direct government dealings may limit the ability of local workers to negotiate for
better conditions and the lack of transparency in Chinese projects makes it difficult to
assess the full extent of their social and economic impact on local communities, leading
to concerns about exploitation.

25
 India and Latin America

ENERGY
SECURITY
Critical
Minerals
TRADE

Engagement with
LATIN AMERICA

South-South
Investment
Cooperation
Indian Diaspora opportunity
 India and Its Neighbourhood

Lack of Perception in foreign

regional policy
cooperation

Issues with LATIN

AMERICA

Limited trade
Long Distance
engagement
 BRICS
Significance of the inclusion of new members:
1. Enhanced inclusivity:
• Expanding BRICS to include more countries from Africa and Asia enhances its representation of
developing nations and diversifies its reach.
• A more diverse BRICS gains legitimacy in advocating for Global South issues like fair trade, climate
justice, and technology access.
• Previously representing 40% of the world’s population and a quarter of GDP, expanded BRICS now
covers nearly half the global population.
• The recent expansion, 13 years after adding South Africa in 2010, strengthens BRICS as a global
entity and a voice for the developing world.’

[Link] strength:
• With five new economies, BRICS could increase its influence in IMF and World Bank forums.
• Intra-BRICS trade reached $500 billion in 2022; expansion could boost trade, investment, and
bargaining power.
• The inclusion of Iran, Saudi Arabia, and UAE adds dynamism, making BRICS home to three of the
world’s biggest oil producers.
• This expansion opens new trade avenues and could be an economic lifeline for countries like Iran.
• It also counters U.S. dominance and challenges unilateral sanctions in global trade.
• The New Development Bank can extend its influence by funding infrastructure and sustainable
projects in new member states.
 BRICS
3. Advocacy for reforms:
• An expanded BRICS can promote multilateralism, uphold international law, and advocate for UN
reforms aligned with Global South interests.
• BRICS has collectively called for UN Security Council reforms to increase Global South
representation.
• Expansion creates opportunities for BRICS nations to trade using local currencies, reducing reliance
on the US dollar and enhancing currency utility. The UAE and India have agreed to trade in Rupees
and Dirhams instead of the US Dollar.

[Link] significance:
• The expansion underscores India and China's active engagement in regions traditionally led by the
U.S.
• China brokered the re-establishment of ties between Saudi Arabia and Iran.
• The UAE and India agreed to trade in Rupees and Dirhams instead of the US Dollar
• Ethiopia's inclusion, with its fast-growing economy and hosting the African Union headquarters, is
strategic.
• Addition of Iran could stabilise the Middle East by facilitating dialogue and conflict resolution.
• With Saudi Arabia as a member, BRICS could gain significant influence over global energy markets,
challenging OPEC and Western dominance.
 BRICS
Significance for India: Strategic partnerships:
[Link] and Ethiopia:
• India has revitalized ties with Egypt, highlighted by Prime Minister Modi's visit to Cairo in June 2023,
the first since 1997. Egypt is India’s 5th largest trading partner, with bilateral trade reaching $5.17
billion between April and December 2022. Its admission to BRICS was expected due to its economic
significance and NDB membership.
• Ethiopia's inclusion demonstrates New Delhi’s strategic foresight, considering Ethiopia's
geostrategic location and resources, including over two billion barrels of oil discovered in January
2023. Ethiopia is the largest recipient of India’s Lines of Credit in Africa, funding energy, sugar, and
railway projects, and both countries are finalizing a defence cooperation agreement.

[Link] Arabia and Iran:

• India-Saudi Arabia relations have strengthened, with Saudi Arabia becoming India’s 4th largest
trading partner. Trade between the two countries reached $42.03 billion in imports and $10.72
billion in exports during FY 2022-23. Saudi Arabia accounts for 18% of India’s energy imports,
highlighting its importance for India’s energy and economic security.
• India maintains cordial ties with Iran, demonstrated by a 10-year deal to develop the strategically
important Chabahar Port, which boosts connectivity to Central Asia and beyond. This aligns with
India’s goal of increasing exports and enhancing economic growth through robust linkages with
Greater Eurasia.
 BRICS
[Link] influence:
• China's pivotal role in BRICS expansion targets Western geo-economic hegemony, aiming to
establish itself as a global leader.
• China's assertive foreign policy, like its stance on the South China Sea, can overshadow BRICS'
collective decision-making, potentially undermining unity.
• China's significant contributions to the NDB could influence lending priorities and governance.
• The Belt and Road Initiative increases economic dependencies of smaller nations, potentially giving
China political leverage within BRICS, impacting other members' autonomy.

[Link] tensions:
• The India-China border dispute highlights geopolitical tensions within BRICS.
• Such tensions can weaken BRICS' cohesion and effectiveness, hindering its role as a unified Global
South voice.

Iran's invitation, influenced by China and Russia, poses challenges as it may take an anti-Western
stance, complicating India's efforts to balance international relations
BRICS
 SCO
Introduction:
• India’s External Affairs Minister S. Jaishankar has highlighted the escalating threat of
terrorism to both regional and global peace, calling for the identification and punishment
of perpetrators, facilitators, financiers, and sponsors of these heinous acts.
• Combating the ‘three evils’-terrorism, separatism, and extremism, remains a priority for
the Shanghai Cooperation Organisation (SCO). The 24th Meeting of the SCO Council of
Heads of State, held in Astana, Kazakhstan, underlined this commitment.
 SCO
Significance of SCO:
A major regional body with substantial global influence due to its extensive geographic and
demographic reach. As of 2023, the combined GDP of SCO member states, measured by
purchasing power parity (PPP), accounts for roughly 32% of the global total.
• Since 2003, the SCO has focused on combating separatism, terrorism, and extremism in
Central Asia to stabilise the region and enhance security.
• By 2006, it added drug trafficking to its agenda, recognizing its role in global terrorism
and instability.
• In 2008, the SCO actively worked to restore stability in Afghanistan.
• The SCO has also pursued economic initiatives, including a 20-year trade and economic
cooperation plan signed in 2003, aimed at creating a free trade zone in Central Asia.
• It provides an alternative to Western-led organisations, covering 40% of the global
population, 20% of GDP, and 22% of the landmass.
• The SCO has launched economic initiatives like the SCO Development Bank and Business
Council to foster integration.
• Controlling over 60% of Eurasia's territory and initiating large-scale projects, the SCO is a
major regional player.
• It includes four nuclear powers-Russia, China, India, and Pakistan, contributing to global
balance and stability.
 SCO
Challenges faced by SCO:

[Link] rivalries:
• Ongoing member conflicts have raised concerns about the SCO's relevance and
effectiveness.
• SCO's ability to manage intra- and inter-state conflicts is increasingly questioned if its
goal is Eurasian peace.
• Russia’s war in Ukraine and China’s rise challenge regional dynamics, creating rivalries that
affect the SCO’s effectiveness.

2. Regional instability:
• The SCO was founded to combat terrorism and maintain regional stability.
• However, ongoing challenges, such as the Taliban's return to power in Afghanistan in
2021, continue to impact regional security and Central Asian countries.
 SCO
3. Economic imbalances:
• China and India are major economic players, but Central Asian countries vary in economic
development. For example, Kazakhstan and Uzbekistan have stronger economies
compared to others in the region.
• These disparities can complicate joint economic initiatives and projects.

4. Internal disputes:
• The India-Pakistan rivalry, both within the SCO, is a significant challenge.
• India’s strong ties with Russia, Iran, and Central Asia, coupled with differences with
Beijing and Islamabad, make it crucial for New Delhi to use its SCO membership to
enhance relationships with Central Asian nations.
• Divergent national interests and priorities can lead to disagreements on various issues.

5. Limited institutional capacity:

• The SCO has limited institutional capacity compared to other international organisations.
• Its consensus-based decision-making process can be cumbersome and hinder timely
action.
 SCO
6. Influence of external actors:
• The U.S. has criticised the SCO’s activities and member states' policies as ‘Anti-Western’.
• External pressures and sanctions can affect the organisation's effectiveness and
objectives.
7. Power imbalance:
• The SCO faces a power imbalance with China and Russia as dominant players, each
seeking greater influence.
• While West views the SCO as a China-Russia led club, insiders see it as a forum where
these two powers compete for influence.
• Four of the five Central Asian republics are SCO members. Russia, traditionally viewing
these resource-rich nations as its sphere, struggles against China's growing presence
driven by strategic, economic, and security interests.
• This competition has intensified with China’s Belt and Road Initiative and Russia’s focus on
its war in Ukraine.
8. Democratic principles:
• The SCO includes member states with differing commitments to democratic principles and
human rights.
• Balancing respect for sovereignty with the promotion of human rights is a complex
challenge.
SCO
 SCO
Significance for India:

[Link] cooperation with Central Asian countries:

• India's SCO membership strengthens ties with Central Asian nations, which have been
distant since their independence in 1991.
• The SCO platform allows India to address shared security concerns and supports its multi-
alignment and strategic autonomy strategy.
• This engagement helps counterbalance India’s Western inclinations, such as its role in
the QUAD, viewed by China as an Asian-NATO.
• India’s growing economic power makes it an attractive partner for Central Asian countries
looking to diversify their economic dependencies.

[Link]-terrorism efforts:
• India’s SCO participation supports its counter-terrorism and connectivity goals, aligning
with the organisation's mission against the ‘three evils’.
• India aims to use the SCO’s Regional Anti-Terror Structure (RATS) in Tashkent for vital
intelligence on terrorism, especially issues not involving Pakistan.
 SCO
3. Balancing Chinese influence and dealing with Pakistan:
• The SCO provides India a platform to counterbalance China's growing influence in Central
Asia.
• Russia sees India's SCO membership as a counterweight to China’s regional dominance.
• The SCO helps India assess and respond to China’s Belt and Road Initiative.
• India's participation is also strategic for addressing challenges related to Pakistan,
including terrorism and efforts to hinder India-Central Asia ties.

[Link] Indian-Russian relations:

• The SCO has strengthened India-Russia cooperation, with Russia's support for India's full
membership in the 2016 Tashkent Summit highlighting its role as a reliable ally.
• This collaboration bolsters India’s strategic relationship with Russia and supports its
regional objectives.
 SCO
[Link] geopolitical influence:
• The SCO's expansion, with Iran as a permanent member and dialogue partnerships with
Nepal and Sri Lanka, boosts its significance for India.
• India's SCO membership enhances its role as a major pan-Asian player, reflecting its
growing influence in Eurasia.

[Link] initiatives:
• The SCO's cultural initiatives boost its value to India. Each year, the SCO designates a city
from its member states as the tourism and cultural capital, with Varanasi being the first
honoured under this initiative.
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Challenges for India in the SCO:
1. Central Asian countries may resist or limit cooperation with India, as they increasingly
engage with China through the Belt and Road Initiative (BRI).
• Kazakhstan, a key BRI partner, could overshadow India's connectivity projects like the
International North-South Transport Corridor (INSTC).
• In 2023, Central Asia's trade with China was $48.4 billion, compared to India’s $3.7
billion, highlighting a significant economic disparity.
• India faces challenges in overcoming geographical barriers and achieving substantial gains
in trans-regional connectivity.

2. India's counter-terrorism goals, especially concerning Pakistan, may clash with the SCO's
broader agenda, leading to potential friction.
• The 2019 Pulwama attack, attributed to Pakistan-based groups, highlighted the
limitations of the SCO’s counter-terrorism framework, as RATS has not adequately
addressed Indian concerns about Pakistan-based terrorism.
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• The SCO's RATS focuses on regime destabilisation terrorism, whereas India's definition
includes state-sponsored cross-border terrorism.
• The SCO targets groups like ETIM and Al-Qaeda but excludes organisations such as
Lashkar-e-Taiba, Jaish-e-Mohammed, and the Haqqani Network, limiting the
effectiveness of its counter-terrorism efforts from India's perspective.

3. The SCO's endorsement of the China-Pakistan Economic Corridor (CPEC) has been a point
of contention for India, as the corridor passes through disputed territories (Gilgit-Balistan,
which is under Pakistan’s control but which India claims as a part of Jammu and Kashmir),
between India and Pakistan.

4. Russia’s growing defence cooperation with China, including joint military exercises and a
55% increase in arms exports from 2019 to 2023, could impact India-Russia relations.
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