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What happened
Defence Minister Rajnath Singh represented India at the 25th Shanghai Cooperation Organisation (SCO) Council of Heads of Government meeting held in Chengdu, China, on 26 May 2025. This council-level meeting focuses on trade, economic cooperation, and multilateral connectivity. India's participation came amid ongoing India-China diplomatic engagement. The meeting adopted several documents on economic and humanitarian cooperation among SCO member states.
02 Understand
Why it matters
The SCO has two apex decision-making bodies. The Council of Heads of State (CHS) is the supreme body, meeting annually, and handles political and security matters. The Council of Heads of Government (CHG), also meeting annually, is one tier below and specifically handles trade, economic, and financial cooperation among member states. This is a critical structural distinction the UPSC examiner tests.
SCO was founded in 2001 in Shanghai from the earlier Shanghai Five grouping (1996). Its founding members were China, Russia, Kazakhstan, Kyrgyzstan, Tajikistan, and Uzbekistan. India and Pakistan became full members in 2017 at the Astana Summit. Iran joined as a full member in 2023. Belarus joined in 2024, making it the latest full member.
The SCO Secretariat is headquartered in Beijing. The Regional Anti-Terrorist Structure (RATS) — the permanent body to combat terrorism, separatism, and extremism — is based in Tashkent, Uzbekistan. The SCO Development Bank and SCO Development Fund (Special Account) are proposed institutions that remain a subject of discussion.
The CHG meeting's focus areas include the SCO Interbank Consortium, SCO Business Council, and facilitation of trade in local currencies — all relevant to India's push for de-dollarisation in trade settlements. India has historically been cautious about certain SCO connectivity initiatives, particularly those overlapping with the China-Pakistan Economic Corridor (CPEC).
SCO was founded in 2001 in Shanghai from the earlier Shanghai Five grouping (1996). Its founding members were China, Russia, Kazakhstan, Kyrgyzstan, Tajikistan, and Uzbekistan. India and Pakistan became full members in 2017 at the Astana Summit. Iran joined as a full member in 2023. Belarus joined in 2024, making it the latest full member.
The SCO Secretariat is headquartered in Beijing. The Regional Anti-Terrorist Structure (RATS) — the permanent body to combat terrorism, separatism, and extremism — is based in Tashkent, Uzbekistan. The SCO Development Bank and SCO Development Fund (Special Account) are proposed institutions that remain a subject of discussion.
The CHG meeting's focus areas include the SCO Interbank Consortium, SCO Business Council, and facilitation of trade in local currencies — all relevant to India's push for de-dollarisation in trade settlements. India has historically been cautious about certain SCO connectivity initiatives, particularly those overlapping with the China-Pakistan Economic Corridor (CPEC).
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