HomeBusinessEconomic significance of PM Modi's SCO meeting in Uzbekistan: 5 points

Economic significance of PM Modi’s SCO meeting in Uzbekistan: 5 points

Economic significance of PM Modi's SCO meeting in Uzbekistan: 5 points

PM Modi to attend SCO meeting in Uzbekistan: 5 points on its economic importance

The Shanghai Cooperation Organization (SCO), a political, economic and security grouping, will hold its summit-level meeting in Samarkand, Uzbekistan on 15 and 16 September. India – a member since 2017 – will be represented by Prime Minister Narendra Modi.

Here are 5 points on the economic aspects of the SCO meeting:

  1. Accounting for nearly a quarter of the world’s gross domestic product (GDP), the SCO includes “stans” including the world’s three major economies – China, India and Russia – and energy-rich Kazakhstan. Kyrgyzstan. Uzbekistan. Iran, another energy-rich nation, is expected to formally join the grouping this year.

  2. According to a Chinese study, the total trade volume of SCO members increased from $667.09 billion in 2001 to $6.06 trillion in 2020. Furthermore, the report compiled by Qingdao Customs and China’s Qingdao-based Ocean University states that the share of SCO members in global trade increased from 5.4 percent in 2001 to 17.5 percent in 2020.

  3. In September 2003, the heads of SCO member-states signed a 20-year “Programme of Multilateral Trade and Economic Cooperation”. The program intends to create a free trade zone within the SCO region as a long-term goal. But, no such plan has been made so far.

  4. Under the auspices of the SCO, the SCO Business Council is a body that encourages greater relations between business communities within the multilateral grouping. Another forum, the SCO Interbank Consortium, has been established “to provide funding and bank services for investment projects sponsored by the governments of SCO member states”. In addition, talks are on for a ‘SCO Development Bank’.

  5. Foreign policy experts are viewing the SCO as a platform for India to engage with the Central Asian republics, also known as “Stan”. In fact, at the 2021 SCO plenary, Prime Minister Modi emphasized on greater trade ties with Central Asia by linking the region with the Chabahar port in Iran. India is developing ports. “If the region wants to benefit from fossil fuels or intra-SCO trade, we will need to put more emphasis on connectivity,” he said.

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