India Cautions Against Misuse of Export Controls at SCO Trade Ministers Meeting: Calls for Fair, Transparent Global Trade

At the recent Shanghai Cooperation Organisation (SCO) Trade Ministers’ Meeting held in Vladivostok, India issued a strong warning against weaponising export-related measures to create artificial scarcity, disrupt markets, or impair global supply chains. The country emphasized that a calibrated and transparent approach to export controls is essential to maintain trust and stability in international commerce amidst growing global uncertainties.

 

Key Highlights: India’s Stand on Export Controls and Trade

 

India cautioned member states against misusing export restrictions that could distort markets or lead to supply chain disruptions, especially in critical sectors.

 

Highlighted issues stem from recent challenges in India’s auto and electronics industries affected by China’s export limitations on rare earth magnets and fertilizers.

 

The Indian delegation underscored the urgent need to address persistent trade deficits by improving market access, simplifying trade facilitation procedures, and enhancing cooperation on standards.

 

Emphasized that climate-related trade measures should not result in arbitrary or unjustified discrimination among trading partners.

 

India reaffirmed its commitment to an open, fair, inclusive, and non-discriminatory multilateral trading system with the World Trade Organization (WTO) at its core.

 

Strategic Context and Representation

 

India, represented by Amitabh Kumar, Additional Secretary of the Department of Commerce, articulated these positions advocating for a development-centered trade agenda that includes support for public stockholding for food security and an effective WTO dispute settlement mechanism.

 

The meeting was set against the backdrop of India’s expanding trade deficit with China, which reached approximately $100 billion in 2024-25, highlighting the impact of restricted exports and the broader need for diversified supply chains.

 

With the SCO comprising 42% of the global population and accounting for 17.2% of international trade, India stressed coordinated action among member states to enhance trade flows, mitigate vulnerabilities, and promote sustainable, inclusive growth.

 

Digital Economy and Innovation Focus

 

India's delegation proposed SCO workstreams geared toward creating fair, transparent, and predictable regulatory frameworks for digital trade.

 

Advocated for voluntary cooperation on best practices and capacity building to foster secure, innovation-led digitalization across member countries.

 

Showcased India’s achievements in Digital Public Infrastructure such as UPI for real-time payments, India Stack, and ONDC as scalable, low-cost models suitable for replication in SCO nations.

 

Broader Trade and Economic Cooperation

 

The meeting approved multiple documents including development strategies aiming at investment promotion, anti-drug initiatives, and combating security challenges.

 

India highlighted the importance of services trade and the temporary movement of skilled professionals aligned with national laws to bolster MSME (Micro, Small, and Medium Enterprises) participation in global value chains.

 

The collective focus remains on building resilient, diversified trade networks that reduce overdependence and foster regional economic stability.

 

Conclusion

 

India’s clear warning against the misuse of export controls at the SCO Trade Ministers’ Meeting underscores its commitment to a balanced, transparent, and trusted global trading system. By advocating fair trade practices, addressing structural imbalances, and promoting innovation-driven digital commerce, India aims to strengthen cooperative economic ties within the SCO framework and across the world. These efforts also highlight India’s role as a key player navigating 21st-century trade challenges towards sustainable and inclusive growth.

 

Sources: Business Standard, The Times of India, The Statesman, PIB India, ScanX Trade