India, Pakistan Upgraded To Members Of The Shanghai Cooperation Organization (SCO)

The Shanghai Cooperation Organization (SCO) has decided to upgrade India and Pakistan to full members of the regional security bloc led by China and Russia.

Pakistani Prime Minister Nawaz Sharif (left) and Indian Prime Minister Narendra Modi (right) on July 10, 2015 at the SCO Summit in Ufa, Russia. Photo courtesy of the Prime Minister of India.

The Shanghai Cooperation Organization (SCO) has decided to upgrade India and Pakistan to full members of the regional security bloc led by China and Russia.

The SCO said that the invitation to the two Asian nations brings forth the evolution of the bloc and shows that a new “multi-polar” world is now emerging.

SCO Heads of State Council, in Ufa, Russia on July 10, 2015.  Photo courtesy of the Prime Minister of India.

“The evolution of the SCO is taking place at a complicated stage in the development of international relations and amidst the emergence of a multi-polar world,” the SCO said in a declaration following the meeting. “These processes are accompanied by increasing security challenges and threats, increasing uncertainty and instability in various regions of the world.”

The SCO decision comes a day after the BRICS Summit of emerging market nations — Brazil, Russia, India, China, and South Africa — that was held in the Russian city of Ufa where the group officially launched their $100 billion New Development Bank (NDB) — also known as the BRICS bank — and signed an agreement on their $100 billion currency reserve pool — also known as the Contingent Reserve Arrangement (CRA).

News Conference By Vladimir Putin Following The BRICS And SCO Summits http://t.co/0D9XeUeTsV

— EMerging Equity (@ETFalpha) July 10, 2015

In June, EMerging Equity reported that the SCO Council of Foreign Ministers had made its decision to upgrade India and Pakistan in the bloc from observers to members and that it would be made official during the SCO and BRICS Summit.

Pakistan, India (And Possibly Iran) Said To Be Upgraded To Members Of The Shanghai Cooperation Organization (SCO) http://t.co/dPtcOC27jv — EMerging Equity (@ETFalpha) June 8, 2015

India, which has held an observer status in the bloc for a decade, will technically become a member by 2016, following the completion of accession procedures.

“I convey our deep sense of gratitude to the members of SCO for accepting India as a full member,” Indian Prime Minister Narendra Modi said following the announcement, attended by leaders such as Russian President Vladimir Putin, Chinese President Xi Jinping, and Pakistan Prime Minister Nawaz Sharif.

“Our membership of Shanghai Cooperation Organization is a natural extension” of the relationships that India has with member countries “and mirrors the region’s place in India’s future”, Modi said.

The expansion of the SCO should serve a “springboard” for the organization to become one of the most dynamic in the world, the Indian Prime Minister said.

The SCO membership also advances the shared vision to reconnect and integrate the Eurasian region, Modi said.

Indian Prime Minister Narendra Modi delivering his address at the Plenary Session of the BRICS Summit, in Ufa, Russia on July 09, 2015. Photo courtesy of the Prime Minister of India.

“As we look forward, we would lend our support to improving transportation and communication networks in the region. We can create a vast network of physical and digital connectivity that extends from Eurasia’s northern corner to Asia’s southern shores. The International North South Transportation Corridor is a step in that direction,” Modi said.

Ties between India and the BRICS and SCO countries have been on the rise, most notably in December of last year, when Russian President Vladimir Putin made a trip to India where 20 high-profile deals worth $100 billion were signed with Indian Prime Minister Narendra Modi in the span of under 24 hours.

In May, during Modi’s inaugural visit to China as PM of India, the two countries signed 50 deals worth around $32 Billion.

The Central Bank of Russia and The Central Bank of India have also been moving closer to an agreement to use their national currencies for trade settlements.

We have also highlighted that Moscow and New Delhi have been in ongoing talks for the construction of a pipeline said to cost $40 billion to deliver Russian natural gas to India.

Russia, India Inch Closer To $40 Billion Gas Pipeline http://t.co/e8dFi08utT pic.twitter.com/JrpdR8UEGq

— EMerging Equity (@EM_Equity) June 4, 2015

Pakistan’s relations with China have also been continuing to strengthen — following Chinese President Xi Jinping’s visit to Islamabad in April — as the two countries signed a total of 51 agreements to boost economic cooperation in addition to launching a $46 billion economic corridor that will link China’s western region to Pakistan’s Gwadar port on the Arabian Sea.

Beijing also agreed to deliver another 50 JF-17 Thunder fighter jets to Pakistan, after already delivering 60 JF-17’s from a contract inked back in 2007.

In April, we reported that China was set to build a natural gas pipeline from Iran to Pakistan to help address Pakistan’s severe energy shortage.

China To Build $2 Billion Natural Gas Pipeline From Iran To Pakistan, WSJ Says http://t.co/0UH0ZVMi2O pic.twitter.com/3NMYmx7Tk5 — EMerging Equity (@EM_Equity) April 9, 2015

The SCO, a Eurasian political, economic, and military alliance was founded in 2001 and currently comprises of Russia, China, Kazakhstan, Kyrgyzstan, Tajikistan, and Uzbekistan.