BackIndia set to become full member of SCO at summit this week
Full membership could give India greater clout in Central Asia; Pakistan also set to be included as a full SCO member
Premium
New Delhi: India looks to be set to join the regional security grouping Shanghai Cooperation Organisation (SCO), led by China and Russia, as a full member at the group’s summit in Russia later this week, which will be attended by Prime Minister Narendra Modi.
Full membership in the SCO could give India greater clout in Central Asia at a time it is seeking to step up its economic engagement with the region.
The SCO, a Eurasian political, economic and security grouping, was founded in 2001. It comprises Russia, China, Kazakhstan, Kyrgyzstan, Tajikistan and Uzbekistan. India has been attending SCO meetings as an observer since 2005.
India formally applied for SCO membership prior to the summit in Dushanbe, Tajikistan, in September 2014. SCO foreign ministers met in June in Moscow and they made a positive recommendation on India’s application.
Pakistan is also set to be included as a member of the grouping along with India.
“Prime minister had received an invitation from (Russian) President (Vladimir) Putin to attend the summit," Shambhu S. Kumaran, joint secretary, Eurasia, ministry of external affairs, told reporters on Friday.
The first indications of India becoming a full member came last month when Russian foreign minister Sergei Lavrov disclosed in a post on the Russian foreign ministry’s Twitter account that SCO member countries had “adopted recommendations paving the way for India & Pakistan accession to the #SCO".
On Monday, Cheng Guoping, Chinese vice-foreign minister, told reporters in Beijing that “India and Pakistan’s admission to the SCO will play an important role in the SCO’s development", Reuters reported.
The two countries are expected to be elevated from their current position of observers at the 15th SCO summit during 9-10 July in Ufa, Russia, that will also be the venue for the seventh summit of leaders of Brazil, Russia, India, China and South Africa, known by the acronym BRICS.
Modi, who left India on Monday for an eight-day tour of Central Asia and Russia, is leading the Indian delegation to both the BRICS and SCO summits.
The presence of Pakistani Prime Minister Nawaz Sharif at Ufa has given rise to speculation about a possible meeting between him and Modi that could possibly lead to the resumption of talks between the two countries.
If the meeting happens—on 10 July—it will be the second of its kind between the two leaders in a little over a year. Modi met Sharif in New Delhi on 26 May last year when the latter was invited for the Indian prime minister’s swearing-in ceremony. Neither India nor Pakistan officially confirmed any meeting between the two.
India’s interest in the SCO stems from its desire for closer contact with energy-rich Central Asian republics. Soon after their emergence as independent states after the break up of the Soviet Union in 1991, India moved quickly to establish diplomatic ties with Uzbekistan, Kazakhstan, Turkmenistan, Kyrgyzstan and Tajikistan.
But the lack of direct connectivity with these countries hampered the efforts, leading to India looking for routes to Central Asia first through Afghanistan and then through Iran after the radical Islamist Taliban takeover of Afghanistan in 1996.
However, the US-led war on terror in Afghanistan that began in 2001 and sanctions on Iran for its suspect nuclear programme slowed India’s efforts yet again. India is currently exploring a free trade agreement with the Russia-led Customs Union, which also includes Belarus and Kazakhstan.
“We would be looking at the elements related to cooperation in energy, counterterrorism, security-related cooperation, anti-narcotics. We would also be interested in economic aspects of relations because the SCO is currently negotiating Development Strategy 2025," Kumaran said.
Former foreign secretary Lalit Mansingh welcomed India’s inclusion in the SCO, noting that it was the only such bloc of Central Asian countries. “It serves our strategic interests to be part of the SCO more as full time members than as observers. On the downside, the SCO is dominated by China. Pakistan too is set to be a member, so that neuters India’s voice. On the whole it is a good idea if India supplements this move with bilateral arrangements," he said.
BRICS summit
The group of five developing economies are expected to make operational the establishment of the BRICS New Development Bank (NDB) and the Contingent Reserve Arrangement during the 7th BRICS Summit from 8 to 9 July.
An SME (small and medium enterprises) platform for BRICS nations is also likely to be finalized during the summit.
The BRICS countries finalized setting up of the NDB at the group’s summit in Fortaleza, Brazil, last year. India has appointed banker K.V. Kamath to head the as its first president.
As per the agreement among BRICS countries, each of the five members will contribute $10 billion to create a capital base of $50 billion for NDB. The five emerging economies also signed a pact to establish the BRICS Contingent Reserve Arrangement (CRA), with an initial corpus of $100 billion, to help countries guard against actual or potential short-term balance of payments pressures, which is expected to be an alternative arrangement to International Monetary Fund aid.
Finance minister Arun Jaitley will participate in the inaugural meeting of the board of governors of the NDB in Moscow on 7 July. On the same day, trade minister Nirmala Sitharaman will also participate in the BRICS trade ministers’ meeting.
While Russia and China are expected to push for an agreement on e-commerce, India is likely to be defensive on the matter due to lack of regulatory clarity at home.
However, India is pushing for an agreement on creating a platform for SMEs. Modi is leading a business delegation of around 30 entrepreneurs, including SME executives.
V.K. Agarwal, president, Federation of Indian Small and Medium Enterprises, said there are many possibilities of cooperation between BRICS nations, depending on the direction set by the political leadership and initiatives undertaken by entrepreneurs.
“Cooperation in the field of technology could be one area. The BRICS bank can also help SME activity in these countries," he added.
Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!
