India has issued a strong caution to the Shanghai Cooperation Organisation (SCO) against the potential weaponization or misuse of export-related measures. Speaking at the SCO Trade Ministers' Meeting in Vladivostok, Russia, on September 6, 2025, India emphasized that the calibrated and transparent application of such measures is crucial for maintaining trust and stability in international commerce.

The concerns raised by India come at a time when its auto and electronics sectors have experienced disruptions due to export restrictions imposed by China on rare earth magnets and fertilizers. With the SCO representing a significant portion of the world's population and global trade, India underscored the need for coordinated action among member states to enhance trade flows, address vulnerabilities, and foster inclusive growth across the region.

India's statement highlighted several key issues:

• Misuse of Export Measures: India cautioned against the misuse of export-related measures to create artificial scarcity, distort markets, or disrupt supply chains. The nation stressed that such actions could undermine trust in international commerce.
• Trade Imbalances: India called for addressing persistent trade deficits through improved market access, cooperation on standards, and streamlined trade facilitation. Notably, India's trade deficit with China has surged to approximately $100 billion in 2024-25.
• Climate Measures: India warned that trade-linked climate measures should not result in arbitrary or unjustified discrimination. The country advocated for financial resources and affordable technology to support climate action, emphasizing equity and the principle of Common but Differentiated Responsibilities.
• Digital Trade: India proposed SCO workstreams to establish fair, transparent, and predictable regulatory frameworks for digital trade. The nation also promoted voluntary cooperation on best practices and capacity-building for secure digitalization. India showcased its achievements in Digital Public Infrastructure, such as UPI, India Stack, and ONDC, as low-cost and replicable models for SCO nations.
• Supply Chains: India stressed the need for diversification and de-risking of supply chains through geographical spread, interoperable logistics, and enhanced connectivity. The nation also cautioned against the misuse of export restrictions to distort markets or disrupt flows.

In addition to these concerns, India reaffirmed its commitment to a rules-based multilateral trading system with the World Trade Organization (WTO) at its core. India stated a development-focused WTO agenda must include a permanent solution on public stockholding for food security, effective special treatment for developing countries, and the restoration of a fully functional two-tier dispute settlement system.

India also highlighted the potential of services trade and the temporary movement of skilled professionals to drive growth and expand the participation of medium, small, and micro enterprises in global value chains. Furthermore, India promoted the AVGC sector (Animation, Visual Effects, Gaming, and Comics) as a driver of employment and exports.