SCO must dismantle ecosystem of terror financing, recruitment, radicalisation, safe havens: PM

International Relations · 2 September 2026 · Based on The Hindu (original report)

2-minute summary

At the 26th Shanghai Cooperation Organisation (SCO) Summit held in Bishkek, Kyrgyz Republic, Prime Minister Narendra Modi delivered a strong address calling on member states to dismantle the entire ecosystem of terrorism, including terror financing, recruitment, radicalisation, and safe havens. Highlighting that there should be 'no place for double standards' on security, the PM asserted that terrorism must never be treated as a strategic asset. The summit coincided with Pakistan taking over the SCO chairmanship for the 2026-2027 term. The resulting Bishkek Declaration expressed deep concern over conflicts in West Asia, supported Iran's sovereignty, and called for an inclusive government in Taliban-ruled Afghanistan. Additionally, the member states welcomed progress toward establishing an SCO Development Bank to fund regional infrastructure and transport projects.

Why it's in the news

Prime Minister Narendra Modi addressed the 26th SCO Summit in Bishkek on September 1, 2026, emphasizing India's counter-terrorism stance as Pakistan assumed the SCO chairmanship for 2026-2027. The summit concluded with the adoption of the Bishkek Declaration, addressing regional security, Afghanistan, and the proposed SCO Development Bank.

Background and context

The Shanghai Cooperation Organisation (SCO) is a permanent intergovernmental international organisation established in 2001 in Shanghai by China, Kazakhstan, Kyrgyzstan, Russia, Tajikistan, and Uzbekistan. It succeeded the 'Shanghai Five' mechanism formed in 1996. India and Pakistan became full members in June 2017 at the Astana Summit. Iran officially joined as a full member in 2023, followed by Belarus in 2024. The SCO focuses on regional security, countering terrorism, separatism, and extremism (the 'three evils'), and fostering economic and cultural cooperation. India's participation in the SCO is guided by its 'Connect Central Asia' policy and its commitment to securing its northern periphery, balancing its relations with Russia and China, and utilizing the Regional Anti-Terrorist Structure (RATS) based in Tashkent to counter cross-border terrorism.

Constitutional provisions

• Article 51 — Directive Principles of State Policy (DPSP) mandate the State to promote international peace and security, maintain just and honourable relations between nations, and foster respect for international law.

Committees and reports

• Financial Action Task Force (FATF) Standards on Terrorist Financing — Though not an SCO body, FATF's global standards against money laundering and terror financing (specifically Recommendation 5) align with PM Modi's call at the SCO to dismantle the financial ecosystems supporting terrorism.

International organisations

• Shanghai Cooperation Organisation (SCO) — Eurasian political, economic, and security alliance. India is a permanent member, utilizing the platform to engage with Central Asian republics and address regional security concerns.
• Regional Anti-Terrorist Structure (RATS) — A permanent organ of the SCO headquartered in Tashkent, Uzbekistan, established to combat terrorism, separatism, and extremism.
• SCO Development Bank — A proposed financial institution currently under consultation among member states to fund large-scale infrastructure, transport, and investment projects in the SCO region.

Previous UPSC questions on this theme

• Mains GS-2 2021 — Critically examine the aims and objectives of SCO. What importance does it hold for India?

Mains practice: Analyze the strategic significance of the Shanghai Cooperation Organisation (SCO) for India's regional security and connectivity goals, while highlighting the challenges posed by internal contradictions within the grouping.

The Shanghai Cooperation Organisation (SCO) represents a vital Eurasian bridge for India, spanning over 60% of the Eurasian landmass. India's active participation, as demonstrated at the 2026 Bishkek Summit, highlights its dual focus on neutralizing security threats and expanding economic footprints in Central Asia.

**Strategic Significance for India:**

• **Security and Counter-Terrorism:** The Regional Anti-Terrorist Structure (RATS) provides India with a multilateral platform for intelligence sharing, joint counter-terror exercises, and combating the 'three evils' of terrorism, separatism, and extremism. PM Modi's call to dismantle terror financing and safe havens directly targets cross-border terrorism.

• **Central Asian Connectivity:** Under its 'Connect Central Asia' policy, the SCO is crucial for India to bypass Pakistan's transit veto, linking with resource-rich Central Asian Republics via the International North-South Transport Corridor (INSTC) and Chabahar Port.

• **Geopolitical Balancing:** SCO membership allows India to maintain strategic autonomy, engaging constructively with Russia and Central Asian nations while managing its complex relationships with China and Pakistan.

**Internal Contradictions and Challenges:**

• **Bilateral Frictions:** The presence of Pakistan and China creates structural bottlenecks. Pakistan's assumption of the SCO chair (2026-27) amidst unresolved cross-border terrorism issues highlights the deep-seated mistrust.

• **Divergent Definitions of Terrorism:** As PM Modi warned against 'double standards', certain member states continue to use terror proxies as strategic assets, undermining the core mandate of RATS.

• **Sovereignty Concerns:** India remains the sole SCO member opposing China's Belt and Road Initiative (BRI) due to the violation of its sovereignty via the China-Pakistan Economic Corridor (CPEC).

In conclusion, while the SCO is riddled with internal contradictions, it remains an indispensable forum for India. To maximize its utility, India must continue to advocate for institutional reforms, push for the early operationalisation of the SCO Development Bank, and demand strict compliance with counter-terror commitments without geopolitical double standards.

Prelims practice questions

Q1. With reference to the Shanghai Cooperation Organisation (SCO), consider the following statements: 1. India and Pakistan became full members of the SCO during the Astana Summit in 2017. 2. The Regional Anti-Terrorist Structure (RATS) is a permanent organ of the SCO headquartered in Beijing, China. 3. Iran and Belarus are full members of the organisation. Which of the statements given above are correct?

1. 1 and 2 only
2. 2 and 3 only
3. 1 and 3 only
4. 1, 2 and 3

Answer: C. Statement 1 is correct: India and Pakistan joined as full members in June 2017 at the Astana Summit. Statement 2 is incorrect: While the SCO Secretariat is in Beijing, the Regional Anti-Terrorist Structure (RATS) is headquartered in Tashkent, Uzbekistan. Statement 3 is correct: Iran joined in 2023 and Belarus joined in 2024 as full members.

Q2. The 'Bishkek Declaration', recently seen in the news, is associated with which of the following international groupings?

1. G20
2. Shanghai Cooperation Organisation (SCO)
3. Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC)
4. Association of Southeast Asian Nations (ASEAN)

Answer: B. The Bishkek Declaration was issued at the conclusion of the 26th Shanghai Cooperation Organisation (SCO) Summit held in Bishkek, Kyrgyz Republic, in September 2026.

Q3. Which of the following countries was NOT a founding member of the Shanghai Cooperation Organisation (SCO) in 2001?

1. Tajikistan
2. Kazakhstan
3. Pakistan
4. Uzbekistan

Answer: C. The SCO was founded in 2001 by China, Kazakhstan, Kyrgyzstan, Russia, Tajikistan, and Uzbekistan. Pakistan (along with India) became a full member much later in 2017.

Revision flashcards

• Where is the headquarters of the SCO Secretariat located? Beijing, China.
• What is RATS in the context of the SCO, and where is it based? Regional Anti-Terrorist Structure; it is a permanent organ of the SCO based in Tashkent, Uzbekistan, focused on combating terrorism, separatism, and extremism.
• Which country took over the SCO Chairmanship for the 2026-2027 term? Pakistan.
• What are the 'three evils' that the SCO charter explicitly vows to combat? Terrorism, separatism, and extremism.
• What new financial institution is currently being planned by SCO member states as per the 2026 Bishkek Declaration? The SCO Development Bank, aimed at funding large-scale infrastructure, transport, and investment projects.