The Shanghai Cooperation Organisation (SCO) has emerged as a noteworthy economic block on the global stage, particularly as geopolitical landscapes shift and member countries reassess their alliances. As of 2025, the collective Gross Domestic Product (GDP) of the SCO’s ten member states is projected to reach nearly $26.8 trillion, constituting around 22.5% of the global economy according to the International Monetary Fund (IMF). This positions the SCO closely to the Group of Seven (G7) and not far behind NATO, which represents about 30% of the world’s GDP.
Major Players in the SCO Economy
China: Dominating the SCO’s economic landscape, China accounts for more than 70% of the bloc’s total GDP, translating to over $19 trillion. As the largest economy in the group, China’s economic policies and performance significantly influence the SCO’s overall dynamics.
India: The second-largest contributor, India, adds approximately $4.2 trillion to the SCO’s economy. Modi’s return to China for the summit underscores the importance of India’s role in the organization, particularly as it navigates complex relationships with both Beijing and Washington.
- Russia: Contributing around $2.1 trillion, Russia’s economy is another crucial element of the SCO. Its strategic resources and geopolitical positioning add significant weight to the bloc’s stability and economic strength.
Together, these three members account for nearly 90% of the SCO’s total GDP, while the remaining members—Iran, Pakistan, Kazakhstan, Uzbekistan, Belarus, Kyrgyzstan, and Tajikistan—contribute less than 15%. This concentration of economic power in a few countries raises questions about the SCO’s long-term viability and influence.
Comparison with Other Economic Blocs
While the SCO’s economic size is substantial, it falls short in comparison to other global economic blocs. The G7, with a combined GDP of around $30 trillion, still leads the SCO, while NATO members boast a combined GDP nearing $36 trillion. Meanwhile, the expanded BRICS group (Brazil, Russia, India, China, and South Africa) is expected to represent the largest bloc, with an anticipated GDP of $48 trillion, amounting to almost 40% of global GDP.
This comparison illustrates that while the SCO is economically significant, it remains smaller in size relative to these other organizations. However, the bloc’s strategic importance cannot be discounted, especially as it operates in a landscape marked by increased tensions and shifting alliances.
Economic Metrics: GDP vs. GNP
Understanding the economic landscape of the SCO also involves examining the differences between GDP (Gross Domestic Product) and GNP (Gross National Product):
- GDP refers to the total value of goods and services produced within a country’s borders.
- GNP counts the total value of goods and services produced by a country’s citizens, regardless of where they are located.
For many SCO member states, there is a subtle distinction between these metrics. For instance, China’s GNP stands at approximately $18.9 trillion, slightly lower than its GDP of $19.4 trillion. India has a GNP of $3.6 trillion, just under its GDP. Interestingly, Iran’s GNP of $421 billion exceeds its GDP of $341 billion, suggesting that a significant portion of Iranian income is generated from abroad. Kazakhstan shows a decrease in GNP compared to GDP, adding another layer of complexity.
These figures underscore the economic interdependence and productivity of SCO countries, indicating that while large foreign and domestic economic activities occur within their borders, there is also a flow of capital and resources beyond their national boundaries.
Geopolitical Context and Future Directions
As geopolitical tensions rise, particularly between major powers like the United States and China, the SCO can position itself as a pivotal player in global economics and politics. The latest engagements, such as Modi’s presence at the upcoming summit, showcase a shift in dynamics, reminding the international community that collaboration among these nations is feasible.
While the SCO operates mainly as a security and political alliance, its economic potential cannot be overlooked. The organization is already fostering greater cooperation on trade, infrastructure, and connectivity projects among its members, which can strengthen its economic positioning in the long run.
Conclusion
In summary, the Shanghai Cooperation Organisation represents a significant economic bloc comprising major players like China, India, and Russia, collectively forming a substantial portion of the global economy. While it is not the largest compared to other international alliances, its importance is magnified by the geopolitical context and the evolving relationships among its members.
As members seek greater collaboration and navigate complex global challenges, the SCO’s economic influence will likely grow, reorienting existing global economic structures. Tracking these developments in the context of rising nationalism and economic protectionism will be crucial for understanding the future of international trade and geopolitics. The evolving dynamics within the SCO may redefine not just regional partnerships but also the global order as a whole.
