Prime Minister Narendra Modi on Sunday praised Afghan President Ashraf Ghani for taking steps towards peace.
This was in reference to the ceasefire, Ghani announced, with the Taliban for Eid on June 7.
Prime Minister Modi also expressed hope that it will be respected by all parties, Tolo News reported.
In response to Ghani's announcement, the Taliban on Saturday announced a ceasefire for the first three days of Eid. This is the first ceasefire by the militant group in Afghanistan since 2001.
Prime Minister Modi made the remarks after India and China agreed to undertake a joint economic project of capacity building in Afghanistan.
Prime Minister Modi also slammed the attempts to threaten peace in Afghanistan calling the situation as an unfortunate example.
Addressing the summit, Russia's President Vladimir Putin said a new agreement signed by the bloc combating terrorism jointly for the next three years.
The new counterterrorism agreement includes joint drills, exchanging information and conducting coordinated anti-terror action, Putin added.
The two-day annual Shanghai Cooperation Organisation (SCO) summit was held in China's Qingdao city.
It was the 18th SCO summit.
The SCO was founded in Shanghai 17 years ago and it now accounts for nearly half of the world's population and over 20 percent of global GDP.
Founded in 2001, the Beijing-based bloc helps resolve border issues, fight terrorism. It aims at countering American influence in Central Asia following its invasion of Afghanistan.
It is by far the largest regional organisation in the world.
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