Xi Proposes SCO Development Bank to Boost Economic Cooperation

Speedy Summary

• The 25th Shanghai cooperation Organisation (SCO) summit began on September 1, 2025, in Tianjin, China.
• Leaders from the 10-member SCO bloc,including Prime Minister Narendra Modi and Russian President Vladimir Putin,participated in day-long deliberations on the blocS future.
• Chinese President Xi Jinping welcomed attendees at the summit and hosted a banquet on August 31.
• The event saw broad participation with invites extended to 20 foreign leaders and representatives from international organizations such as U.N. Secretary-General Antonio Guterres for the “SCO Plus” summit.
• Mr. Xi emphasized global instability and encouraged strategic communication among member nations while asserting that differences should be respected.
• Proposals included establishing an ‘SCO development Bank’ to boost economic cooperation within member states.
• China pledged financial support: a grant of 2 billion yuan this year and loans totaling 10 billion yuan over the next three years through SCO Interbank Consortium.

Indian Opinion Analysis

The ongoing deliberations at the SCO summit underscore India’s growing role in multilateral platforms addressing transnational challenges. Prime Minister Modi’s attendance signals continued prioritization of regional stability amid shifting geopolitics. China’s acknowledgment of global “chaos” highlights broader concerns of polarizations perhaps affecting cooperation among member states.India’s engagement in initiatives like discussions around an ‘SCO Development Bank’ may have significant implications for regional connectivity projects while balancing strategic dependencies within this framework remains crucial. Furthermore, China’s financial pledges could increase beijing’s influence; however, India’s independent stance might counteract overreliance or geopolitical imbalances emerging under such overtures.

Read more: The Hindu