At the SCO Summit, India, China, and Russia indicate a potential reshaping of global finance, potentially opening new investment avenues, albeit with a reserved long-term view.

At the Shanghai Cooperation Organisation (SCO) summit in Tianjin, leaders from India, China, and Russia gathered to discuss regional and global developments. Among the key topics was the future of international finance and trade.

Chinese President Xi Jinping announced plans for a new SCO development bank and proposed to inject USD 1.4 billion in loans and grants over three years. Xi's proposals are intended to offer a strategic counterweight to existing Western-dominated institutions and challenge the entrenched dominance of the U.S. dollar in international finance.

President Vladimir Putin endorsed Xi's vision, framing the SCO as a vehicle for "genuine multilateralism" and a basis for a new Eurasian security and financial architecture. Putin also pressed for reform of institutions such as the IMF and World Bank, deriding the weaponization of finance under existing norms.

Establishing the new SCO development bank will require delicate diplomacy, clear rules, and sustainable financing models to gain investor confidence. Analysts suggest that the bank could catalyse capital towards infrastructure, renewable energy, and digital economy projects across member states. Sovereign wealth and institutional investors may view the bank as a new conduit for long-term, impact-oriented financing if its governance and transparency can match its ambition.

Proposals such as "R-Block" currency trading, using rupee, ruble, and renminbi, signal early steps toward financial de-dollarization. The flip side of de-dollarization includes potential volatility in emerging-market capital and currency flows.

India's Prime Minister Narendra Modi attended the SCO summit for the first time since 2018 and emphasized India's intent to strengthen regional cooperation. Modi held an excellent meeting with President Putin on the sidelines of the SCO Summit in Tianjin, discussing ways to deepen bilateral cooperation with various sectors, including trade, fertilisers, space, security, and culture.

U.S. tariffs continue to weigh on India's exports. Modi also highlighted India's strategy to diversify its global partnerships amid mounting U.S. tariffs. Analysts tracking India's markets noted that while the summit lifted sentiment, underlying vulnerabilities persist.

Regional realignments registered at the summit may offer new opportunities for investors, but the near-term outlook remains cautious. The proposed SCO development bank could provide a significant boost to the region's economic development, but its success will depend on its ability to attract investment and maintain stability in the face of potential volatility.

As the world continues to grapple with economic uncertainty, the SCO summit in Tianjin underscores the importance of multilateral cooperation and the search for new financial architectures to support sustainable growth.

At the SCO Summit, India, China, and Russia indicate a potential reshaping of global finance, potentially opening new investment avenues, albeit with a reserved long-term view.