Impossible to reach a solution till all make concerted efforts, on radicalisation, terrorist recruitment/training/financing issues.
"SCO effort will give peace, stability in the region and it will fight against terrorism and extremism in any form", PM Modi said.
The prime minister's adviser on foreign affairs, Sartaz Aziz, also attended the meeting.
After India becomes the member of the grouping, SCO will represent over 40 per cent of humanity and almost 20 per cent of the global GDP.
Prime Minister Nawaz Sharif on Friday held a meeting with Russian President Vladimir Putin on the sidelines of SCO summit in Kazakhstan.
The remarks by the Prime Minister are assumed significant as recently India boycotted Belt and Road Forum held in Beijing where more than 29 world leaders were participants.
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The Shanghai Cooperation Organization is a political, military and economic alliance including China, Kazakhstan, Kyrgyzstan, Russia, Tajikistan and Uzbekistan. Both leaders also discussed the importance of enhancing connectivity.
He said the SCO membership achievement had come at a time when Pakistan was already working on various mega projects and joining the One Belt One Road initiative.
It has six observer states, namely Iran, Afghanistan, Belarus, Mongolia, India and Pakistan.
The two leaders also discussed Bollywood film "Dangal" amidst a detailed discussion on cultural cooperation.
India and Pakistan are one step away from becoming SCO members.
However, the Prime Minister, speaking in the presence of Chinese President Xi Jinping and Pakistan Prime Minister Nawaz Sharif among others, asserted that sovereignty and territorial integrity should be the key factors in such a cooperation.