• May 12, 2023

Eurasia Is Promising

GS 2 India & Foreign Relations International Organisations & Groupings

In Context

•  2023 is a significant year for India, as it will host multiple global events, including the Shanghai Cooperation Organization (SCO) summit.

Significance of Eurasia for India:

Varanasi – Cultural and Tourism Capital of SCO

• The holy city of Varanasi will be the first “Cultural and Tourism Capital” of the Shanghai Cooperation Organisation for 2022-23, showcasing India’s culture and traditions throughout the centuries.
• The appellation of ‘Cultural and Tourism Capital’ will be rotated among the eight member states.

Security

• RATS can assist India in enhancing its counterterrorism capabilities through intelligence exchange, law enforcement, and the development of best practices and technologies.
• Through the SCO, India can also combat narcotic trafficking and the proliferation of small arms.

Regional Integration

• The Shanghai Cooperation Organization can aid in attaining regional integration and promoting connectivity and stability across borders.
• It also enables India to engage in multilateral discussions with allies such as Russia and adversaries such as China and Pakistan.

Geopolitical Advantage

• Central Asia is part of India’s Extended Neighbourhood.
• SCO affords India the opportunity to pursue the “Connect Central Asian Policy”.
• It will also assist India in containing China’s expanding influence in Eurasia.

Opportunities & potential:

Trade & commerce

• SCO assumes significance in light of India’s desire to sign free trade agreements (FTAs) with Eurasia-based nations.
• The Eurasian nations have the potential to be long-term energy (oil, natural gas) and natural resource (uranium, iron ore, etc.) partners.
• India’s trade relations with China, Russia, and Pakistan are well-known; therefore, it would be prudent to investigate other markets within the SCO.

Pharmaceutical sector

• Concentrating on pharmaceutical and allied products could be a smart place to start. India will have a great deal of room to expand its pharmaceutical exports to Kazakhstan, Kyrgyzstan, Tajikistan, and Uzbekistan.
• In the current geopolitical environment, it is nearly impossible for India to penetrate the Chinese market in these four economies.
• However, India has the potential to make greater inroads in the pharmaceutical industry.

Infrastructure development

•  Infrastructure development opportunities in Eurasia remain mainly unexplored by India.

TAPI pipeline

• Over the years, India formulated numerous strategies to establish a connection with Central Asia. The Turkmenistan-Afghanistan-Pakistan-India gas pipeline, for example, has the potential to satisfy India’s energy requirements.

Hospitals and clinics

• Given its experience in other developing economies, India could extend cooperation through the infrastructure development initiative by establishing hospitals and clinics in Eurasia.

Central Asian e-network for education & medicine

• India is also intending to establish a Central Asian e-network with its hub in India in order to provide tele-education and tele-medicine connectivity between Central Asian states.

 Project exporters

• Indian companies have in the past effectively implemented projects in a variety of sectors and in diverse international markets, including Africa.
• They have also demonstrated the ability to execute a variety of projects in challenging environments.
• Since Eurasia offers a diverse array of opportunities across industries, Indian project exporters could partner with foreign entities to enter this market. Nonetheless, they will have to compete with China in the region.

Challenges:

Volatility of the region

• Afghanistan’s instability and terrorist safe havens in the Af-Pak region have stymied numerous connectivity projects initiated by SCO member states and other Eurasia-regional nations.

Pakistan’s refusal for connectivity projects

• By denying to facilitate connectivity through its territory, Pakistan has impeded strategic, economic, and cultural interests.
• For example, the Turkmenistan-Afghanistan-Pakistan-India (TAPI) pipeline has been suspended since 2006 as a result of insecurity in Afghanistan and Pakistan’s impediments.

Illicit drug trade

• Another common challenge for the SCO region is the illicit drug trade emanating from the Af-Pak region.
• In 2021, more than 80% of opium and heroin supplies to the global opium market originated from Afghanistan via various routes.
• The increased involvement of terrorist organizations in the drug trade has presented the SCO with new geopolitical challenges.

Perception of anti-West forum

•  The West continues to believe that the SCO is an anti-Western forum.

Way ahead

• While it is essential for India to prioritize security concerns at SCO meetings, the potential for economic and trade cooperation with SCO members in Eurasia must also be explored.
• SCO is possibly the only forum where India and countries of this region gather together.