What will be the benefit to India after SCO Summit.

The 25th Shanghai Cooperation Organization (SCO) Summit, held in Tianjin, China, from August 31 to September 1, 2025, focused on themes like regional security, economic cooperation, and global governance reform. For India, the summit yielded several potential benefits across diplomatic, economic, security, and connectivity domains, based on outcomes from bilateral meetings (notably between PM Narendra Modi and Chinese President Xi Jinping), multilateral discussions, and the adopted Tianjin Declaration. Here's a breakdown of the key benefits:

Diplomatic and Strategic Benefits

• Improved Bilateral Ties with China and Russia: The summit facilitated a reset in India-China relations, with Modi and Xi committing to mutual respect, reducing uncertainties from past border tensions, and viewing each other as "partners, not rivals." This could lead to more stable diplomacy and joint action on global issues like terrorism. Similarly, Modi's meeting with Russian President Vladimir Putin reaffirmed the special India-Russia partnership, providing a counterbalance to external pressures such as U.S. tariffs under the Trump administration.
• Enhanced Multilateral Influence: India positioned itself as a proactive SCO member by supporting reforms to global institutions like the United Nations and advocating for a Civilizational Dialogue Forum to boost people-to-people ties and cultural exchanges among members. This strengthens India's voice in Eurasian affairs and helps in shaping a multipolar world order.

Economic Benefits

• Hedge Against U.S. Tariffs and Trade Diversification: Amid potential U.S. tariffs (up to 50% on Indian exports), the summit emphasized the Russia-India-China (RIC) axis and "R-Block" currency settlements using rupees, rubles, and renminbi. This could redirect trade flows, reduce India's trade deficit with China, and lessen dependence on dollar-based systems, fostering long-term economic resilience.
• Sectoral Gains and Supply Chain Boosts: China assured supplies of critical materials like rare earths, fertilizers, and tunnel boring machines, benefiting India's electric vehicles (EVs), renewables, and infrastructure sectors. This could lower costs for companies in these areas and enhance competitiveness. Additionally, resumed direct flights and closer coordination may uplift aviation, tourism, shipping, logistics, solar technology, and electric mobility, potentially creating jobs and boosting stock market sentiment.
• Energy Security and Infrastructure Cooperation: Strengthened ties with Russia enable more oil imports settled in non-dollar currencies, stabilizing foreign exchange reserves and reducing import costs. Broader SCO collaboration in energy, payments, and infrastructure could support India's growth in these areas.

Security and Connectivity Benefits

• Stronger Counter-Terrorism Framework: Modi stressed zero tolerance for terrorism, calling for unified action against financing, radicalization, and cross-border threats (implicitly targeting Pakistan). The summit supported new SCO centers for organized crime, drug trafficking, and cybersecurity, enhancing India's regional security posture.
• Advancements in Connectivity Projects: India highlighted initiatives like the Chabahar port and International North-South Transport Corridor (INSTC), which could gain momentum through SCO backing, improving trade routes and economic linkages with Central Asia and beyond.

Innovation and Youth Opportunities

• Focus on Start-ups and Innovation: Discussions emphasized collaboration in start-ups, youth empowerment, and AI (as urged by Xi), potentially opening avenues for Indian innovators to access SCO markets and technologies.

Overall, these benefits position India to navigate global challenges like trade wars and geopolitical tensions while fostering growth in key sectors. However, realization depends on follow-up actions and implementation of agreements.