India-China-Russia: Beginning today, Sunday, August 31, Tianjin, the port city of China, will welcome 20 world leaders, including Prime Minister Narendra Modi and Russia’s Vladimir Putin, for the 25th Shanghai Cooperation Organisation (SCO) Summit, held under the theme “Promoting the Shanghai Spirit: SCO in Action.”
Russian President Vladimir Putin and Indian Prime Minister Narendra Modi are among over 20 world leaders set to attend the Shanghai Cooperation Organisation summit, which will begin on Sunday and conclude on Monday.
Chinese President Xi Jinping held talks with Prime Minister Narendra Modi on the sidelines of the SCO Summit. This marks PM Modi’s first visit to China in seven years to attend the two-day SCO summit, which brings together leaders from Russia, Central Asia, South and Southeast Asia, and West Asia, showcasing the solidarity of the Global South.
The SCO Summit comes at a time when US President Donald Trump has levied 50 per cent tariffs on Indian goods. According to market experts, the summit is a good news for investors amid Trump’s tariff row.
“The 2025 SCO Summit in Tianjin comes at a critical juncture for India’s capital markets, as Donald Trump’s steep 50% tariff package on Indian exports has shaken investor confidence and raised fears of prolonged trade friction with the U.S. For India, which has enjoyed steady FPI inflows and resilience in equity indices, the tariffs pose a dual challenge: weaker export competitiveness and the risk of a wider current account imbalance. The summit’s push toward strengthening the Russia–India–China (RIC) axis and promoting “R-Block” currency trade through the Rupee, Ruble, and Renminbi signals a strategic hedge against U.S. pressure, but investors remain cautious,” said Seema Shrivastava, Senior Research Analyst at SMC Global Securities.
How SCO Summit 2025 can benefit India?
The summit, which unites India, China, Russia, and other participating nations, showcases solidarity and collective strength against US tariffs widely regarded as unfair across Asia.
“ For India, it highlights a shift away from depending on concessions from the US and towards exploring regional solutions. The cancellation of a planned US delegation’s visit to India only reinforces this changing dynamic,” said Gaurav Goel, Founder & Director at Fynocrat Technologies.
Goel further highlighted that both China and Russia are now opening their economies further to India, helping redirect trade flows and reduce the sting of US tariffs. India’s decision to cautiously improve ties with China, despite past tensions, reflects a pragmatic choice to prioritize economic security and regional cooperation over rivalry, he added.
Apart from trade, the summit also fosters wider cooperation in sectors like energy, infrastructure, and payments. While these initiatives may not yield instant benefits, they help build long-term resilience by lowering reliance on US-dominated systems and enhancing regional self-sufficiency.
“The SCO Summit may not directly undo Trump’s tariffs, but it is more than a diplomatic gathering. It marks a strategic pivot where India, China, and Russia show readiness to chart their own economic path, building resilience, deepening partnerships, and signaling that US trade pressure will not dictate their future,” Goel said.
Article source: livemint.com
