Despite differences, India has scored with a consensus declaration at the SCO summit

India is the only member of the SCO that enjoys close relations with the US as well as Russia and Iran, though India-China relations are again not cordial because of the border standoff. (Image: PTI)

An in-person two-day meeting of the Shanghai Cooperation Organisation (SCO) in New Delhi was expected to allow India to showcase its independent foreign policy but the change in mode to video conferencing didn’t impact the outcome of the summit. India chaired the SCO meeting for the first time since her admission as a full-fledged member in 2016. The outcome of the summit, attended by among others by Chinese President Xi Jinping and Russian President Vladimir Putin, needs to be analysed with reference to India’s presidency.

Consensus, Despite Differences

The New Delhi Declaration at the end of the summit, underling the broad consensus, was carefully worded to indicate differences on two major issues, namely Belt Road Initiative (BRI) and Development Strategy. Apart from New Delhi Declaration, other agreements signed included the Memorandum of Obligations of the Republic of Belarus and statements on deradicalisation and digital transformation, among others. It’s important to understand that India has been opposed to BRI on the issue of sovereignty and also to China is building the China-Pakistan Economic Corridor (CPEC) in Pakistan-Occupied Kashmir (POK). India believes that the BRI is proving to be a debt trap for many developing countries and that it has jeopardised many economies including those of Pakistan and Sri Lanka. China has been forcibly taking over strategic locations by ensnaring many countries into a debt trap and thereby proving to be a threat to global peace. Another issue on which India didn’t agree was the document on Development Strategy 2030. India had already flagged her concerns over Chinese influence on the document, which is similar to the Global Development Initiative, and has objected to retaining the language of the document.

India’s Balanced Approach

Russia and Iran are at present victims of economic sanctions imposed by the US and its allies. Within the SCO membership, India and China have not only continued to purchase oil from Russia and Iran but have increased the quantity of imports manifold. This has been irritating the US and the West, but India has adopted a balanced approach and continued its friendly relationship with the US. Prime Minister Narendra Modi’s recent visit to the US is an indication of India’s independent approach. India’s all-season friendship with Russia is proving to be a boon for both India and Russia. Russia and China have been deepening their cooperation in economic and strategic affairs.

India has chosen to remain neutral about the Russia-Ukraine conflict. With the SCO move towards the settlement of trade between member countries in their domestic currencies indirectly impacting the dominance of the US dollar, the process of de-dollarisation is gaining ground. Members of the SCO had agreed to increase the use of their national currencies in trade between the member countries in February 2022.

The admission of Iran to SCO this year, and the decision of India and Russia to join hands to support the development of Chabahar Port and the International North-South Transport Corridor (INSTC) can prove to be a boon for the whole region. India has a special interest in Iran due to Chabahar Port. Since 2016, as part of a trilateral agreement with Iran and Afghanistan, India has committed a sizeable investment for the development of the port and its connecting train project. India has invested $85 million in the development of the port and has pledged to invest a further $8 billion in the Chabahar Special Economic Zone. The project has been facing rough weather since the beginning. Russia also has a special interest in the development of this port and related infrastructure, as Chabahar port is located outside the Strait of Hormuz and it would provide Russia with an alternative route for shipping goods to and from the Middle East. More private investments are expected to flow into the Chabahar port given Iran’s membership. The INSTC links not only India and Russia but also the markets in central Asia.

The SCO has been considered to be a China-led organisation and a move to undermine the interest of the US in Central Asia. Three present member countries of the SCO — Russia, China and Iran — do not enjoy friendly relations with the US. Yet we cannot call it an anti-West or an anti-American formation. In many ways, India is the only member of the SCO that enjoys close relations with the US as well as Russia and Iran, though India-China relations are again not cordial because of the border standoff.

The online summit of SCO demonstrated the stand of Russia and China, both vocally disapproved of the US sanctions. But at the same time, India’s disapproval of China-led BRI and China-dominated Development Strategy 2030 made India stand apart. The message from the SCO is very clear — international diplomacy is never black and white. The SCO underlines the reality of a multipolar world. With a lot of churning taking place globally, the SCO-like groupings have great importance for the maintenance of power balance.

Ashwani Mahajan is a professor at PGDAV College, University of Delhi, and the national co-convener of the Swadeshi Jagran Manch. Views are personal and do not represent the stand of this publication.