PM Modi’s Visit to China: Key Economic Outcomes and Bilateral Talks

PM Narendra Modi concluded the SCO Summit in Tianjin on September 1, 2025. This visit marked his return to China after seven years. He had discussions with important leaders, including China’s President Xi Jinping and Russia’s President Vladimir Putin.

India has been a member of the SCO since 2017 and held the SCO presidency in 2022 and 2023. In this blog, we will cover the key highlights of PM Modi’s visit to China and what are the key outcomes for India’s global ties.

What is SCO?

The Shanghai Cooperation Organisation (SCO) is a permanent inter-governmental body of 10 member nations. The list includes India, Iran, China, Kazakhstan, Kyrgyzstan, Pakistan, Russia, Tajikistan, Uzbekistan, and Belarus.

This organisation focuses on regional security, economic cooperation, cultural exchange, and promoting peace and stability in these nations.

Key Highlights of Modi’s Speech in SCO

Defining India’s vision for the SCO, PM Modi said New Delhi’s approach is based on three principles, i.e., security, connectivity, and opportunity (SCO). He highlighted that the SCO, which connects nations across Eurasia, should be a platform to build trust, strengthen economic ties, and ensure peace amid global uncertainties.

Modi expressed India’s support for the SCO’s upcoming initiatives. He praised the rising Global South and welcomed the creation of four new centers to address challenges like organized crime, drug trafficking, and cybersecurity.

On the global stage, Modi shared India’s growth story. He stated that the country is following the mantra, “Reform, Perform, Transform.” He invited other nations to join India’s development journey and help in turning challenges into opportunities.

Bilateral Trade Between India and China

During April to July 2025-26, India’s exports to China increased by 19.97% to $5.75 billion. At the same time, imports rose by 13.06% to $40.65 billion. In 2024-25, India’s exports to China were $14.25 billion, while imports reached $113.5 billion.

The trade deficit (which is the difference between imports and exports) rose from $1.1 billion in 2003-04 to $99.2 billion in 2024-25. China’s trade deficit made up about 35% of India’s total trade imbalance of $283 billion in the last financial year. The gap stood at $85.1 billion in 2023-24.

GTRI Founder Ajay Srivastava says that China’s dominance gives it potential leverage over India. This can turn supply chains into a method of pressuring India during political tensions. The imbalance is growing as India’s exports to China keep falling, and India’s share of bilateral trade has fallen to 11.2% in 2025, down from 42.3% two decades ago.

According to the Commerce Ministry, most goods imported from China are raw materials, intermediate products, and capital goods such as auto components, electronic parts, mobile phone parts, machinery, and active pharmaceutical ingredients.

These items are essential for creating finished products that are also exported. They also highlighted that India’s reliance on imports in these areas is mainly due to the gap in local supply and demand.

PM Modi Meets Xi: Key Highlights

Both leaders agreed on strengthening connections between the two nations. They discussed starting direct flights, simplifying visa processes, and initiatives like the Kailash Manasarovar Yatra, as well as tourist visas.

For economic and trade issues, they acknowledged that India and China can collaborate to stabilize global trade. They agreed on a strategic approach to boost trade, attract investment, and lower the trade deficit.

PM Modi Meets Putin: Key Highlights

In China’s SCO meet, PM Narendra Modi and President Vladimir Putin discussed economic, financial, and energy cooperation between India and Russia. They expressed satisfaction with the steady growth in the relationship between the two nations.

They also showed their commitment to strengthening the Special and Privileged Strategic Partnership. PM Modi also invited President Putin to India for the 23rd Annual Summit later this year.

Can the RIC Troika Revive?

First proposed in the late 1990s by Russian leader Yevgeny Primakov, the Russia-India-China (RIC) troika was made to handle US dominance in a unipolar world. While all three nations have concerns with the US, tensions between India and China have limited closer collaboration in this troika.

In 2025, China’s Foreign Minister stated that RIC cooperation benefits all three nations and promotes global peace, security, and progress.

Together, these three nations account for $53.9 trillion in GDP (PPP), nearly one-third of the world’s total output. Their exports are more than $5 trillion, with $4.7 trillion in foreign reserves, making up 38% of the global total.

The combined population of the three countries is 3.1 billion, which is about 38% of the total world’s population. Combined military spending reached $549 billion, which is one-fifth of the world’s defense budget.

China’s manufacturing power, Russia’s energy leadership, and India’s service sector strength highlight the three nations’ distinct capabilities. Their meeting under the SCO has sparked renewed interest in the RIC dialogue, indicating a possible reset in trilateral engagement.

Conclusion

Amidst high tariffs of 50% from the US, India’s balancing act will remain important. It needs to navigate strategic complexities with China while further strengthening its strong partnership with Russia.

For India, RIC is a double-edged sword. It provides strategic leverage, but deeper engagement brings geopolitical and economic risks. In the long run, how India manages its supply chains and strengthens its domestic economy will be crucial.

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Author: All Content is verified by SMC Global Securities.