The year 2023 is evidently important for India as it hosts multiple global events, including that of G20 and the Shanghai Cooperation Organisation (SCO). While G20 is a mix of developed and developing countries, the SCO largely comprises aspiring developing economies of Eurasia, along with a few from South Asia.

The full-time members of this two-decade-old body are China, Kazakhstan, Kyrgyzstan, Russia, Tajikistan, Uzbekistan, India, and Pakistan. The basic tents of SCO revolve around ensuring security and stability across the vast Eurasian region, and enhancing trade, cultural and humanitarian cooperation.

SCO assumes importance given India’s interest in signing free trade agreements (FTAs) with countries in Eurasia. The Eurasian states can be long-term partners in energy (oil, natural gas) and natural resources (uranium, iron ore, etc).

India’s trade relations with China, Russia and Pakistan are known, hence exploring other markets in the SCO would be worthwhile. Towards this end, India will do well to assess the business opportunities in this region.

Pharmaceuticals

Focussing on pharma and allied products could be a good starting point. In fact, India will have much scope to enhance pharmaceutical exports to Kazakhstan, Kyrgyzstan, Tajikistan, and Uzbekistan.

India’s exports to SCO (minus China, Russia, and Pakistan) has increased from only $305 million in 2017 to $537 million in 2021. At the same time, China’s exports to SCO (minus India, Russia, and Pakistan) increased from $21 billion to $29 billion during the same period.

In the current scheme of things, it is almost impossible for India to eat into the Chinese space in these four economies. However, in pharmaceuticals, India has the potential to make greater inroads.

As of 2021, the combined pharma imports of these four economies stood at $3.58 billion, of which, India’s share was just around 12 per cent or $435 million.

This can be scaled up, especially given India is known for the export of high-quality pharmaceutical products worldwide.

Opportunities in infrastructure development remain largely unexplored by India in Eurasia. Over the years, India had multiple plans to link itself with Central Asia. However, given the geoeconomics, there is little hope that will materialise. For instance, the Turkmenistan-Afghanistan- Pakistan-India gas pipeline, which has the potential to meet India’s energy needs, may not see the light of the day anytime soon.

Project exporters

Indian companies have in the past successfully implemented projects in a variety of sectors and in diversified markets overseas, including in Africa. They have also demonstrated capabilities to successfully execute a range of projects in challenging environments.

Given that Eurasia provides a wide range of opportunities across sectors, Indian project exporters could collaborate with overseas entities to get into this market. However, they will be required to compete with China in the region.

India, through the infrastructure development initiative, could also extend cooperation by setting up hospitals and clinics in Eurasia given its experience in other developing economies. India also has been planning to set up a Central Asian e-network with its hub in India, to deliver, tele-education and tele-medicine connectivity, linking Central Asian states.

Good economics is, in the long-run, good politics too. While it is imperative for India to bring security issues to the fore at SCO meetings, the potential for economic and trade cooperation with members of the SCO, like those in Eurasia, must be explored. SCO is, perhaps, the only platform where India comes together with countries of this region.

The writer is an Economist with India Exim Bank. Views are personal

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