G7

Syllabus
GS Paper II – Bilateral, Regional and Global Groupings and Agreements involving India and/or affecting India’s interests.

Context
Where does India stand with respect to the G-7? | The Hindu Explained

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G7

Introduction

The G7 (Group of Seven) is an influential forum comprising seven leading industrialized nations: Canada, France, Germany, Italy, Japan, the United Kingdom, and the United States. It plays a crucial role in shaping global responses to various challenges, complementing the economic coordination carried out by the G20. Recently, the 2024 G7 Summit took place in Apulia, Italy, where leaders stood united to address pressing issues. Key actions included supporting Ukraine’s fight for freedom, driving up costs for Russia’s war machine, tackling the climate crisis, and promoting health and food security. The summit emphasized cooperation and the rules-based international order.

Key Points on G7

Background:

• Established in 1975 in response to the 1973 energy crisis.
• Informal group of leading industrialized nations.

Membership:

• Consists of Italy, Canada, France, Germany, Japan, the United Kingdom, and the United States of America.
• Canada joined in 1976 (not a founding member).
• The European Union also participates, represented by the President of the European Council and the President of the European Commission.
• G7 expanded to G8 with Russia’s inclusion between 1997 and 2013, but Russia’s participation was suspended in 2014 due to the illegal annexation of Crimea.

Administration:

• Lacks a permanent administrative structure.

Presidency:

• Rotating leadership; each year, a member country assumes the presidency from January 1.
• The EU does not hold the rotating presidency.
• In 2024, Italy assumed the presidency (seventh time), succeeding Japan and handing it over to Canada in December.

Significance:

• United by common values and principles.
• Plays a crucial role in upholding freedom, democracy, and human rights on the international stage.

Key Points on G7 Summit

Organization:

• Hosted by the nation holding the Presidency.
• Consists of Group work and the Leaders’ Summit.
• The Presidency sets the agenda and identifies priorities.
• Prepared by Sherpas, who are personal representatives of Heads of State and Government. They oversee negotiations and draft the final communiqué.

History:

• The first G7 summit was held in 1975 in Rambouillet, France, also known as the Rambouillet summit.

Participants:

• Attended by Heads of State and Government from the seven member states.
• Also includes representatives of the European Union and other invited States and International Organizations.
• Summit outcome: Adoption of a communiqué outlining important political commitments, which significantly influence global governance and decision-making processes.

Key Points on Apulia G7 Summit

Location:

• Held in Borgo Egnazia (Fasano) in Apulia, Italy.

Agenda:

• Defending the “rules-based international system” amid Russia’s aggression towards Ukraine.
• Addressing the Middle East conflict.

Outcome:

• Supporting Ukraine’s fight for freedom by unlocking $50 billion USD.
• Calling for a comprehensive deal in Gaza for the release of hostages and humanitarian assistance.
• Deepening cooperation with partners in Africa for global stability and prosperity.
• Standing with allies and partners in the Indo-Pacific to enhance connectivity.
• Promoting economic resilience and security.
• Partnering with developing countries to invest in their future.
• Accelerating the clean energy transition to address climate change.
• Launching the Apulia Food Security initiative to combat health and food insecurity.
• Investing in children to support women’s economic participation.
• Endorsing a three-pronged approach to address migration issues.
• Deepening cooperation with Artificial Intelligence.

Significance of the G7

• Global Reach:
  • Over the years, the G7 has evolved beyond an economic forum to address global challenges such as trade, security, and human rights.
  • Their collective actions carry significant influence when they act in concert.
• Shaping International Policies:
  • Instrumental in coordinating economic policies, promoting free and fair trade practices, and shaping global governance issues.
  • Supports security cooperation and development assistance.
• Influence on the World Economy:
  • Despite declining global trade share, G7 countries still account for approximately 50% of the world economy.
• Addressing Climate Change:
  • The 2015 summit played a crucial role in paving the way for the Paris Agreement, which aims to limit global carbon emissions.
• Cultural Diplomacy:
  • G7 summits serve as a showcase for cultural diplomacy, with each host country highlighting the best of its cuisine and culture.

India’s role in the G7

• Climate Change and Sustainability:
  • India actively participates in global climate negotiations, advocating for sustainable development and equitable solutions to climate change.
  • Initiatives like the International Solar Alliance (ISA) and ambitious renewable energy targets align with the G7’s focus on environmental sustainability.
• Global Health:
  • During the COVID-19 pandemic, India played a significant role as a major vaccine producer and supplier of medical resources to other nations.
  • G7 discussions on global health security and pandemic preparedness recognize India’s contributions.
• Economic and Digital Cooperation:
  • India’s growing digital economy and leadership in the technology sector position it as a valuable partner in discussions on digital transformation and economic resilience.
  • Initiatives such as Digital India and efforts toward data privacy and cybersecurity align with G7 priorities.
• Geopolitical Influence:
  • India’s strategic importance in the Indo-Pacific region makes it crucial for addressing geopolitical challenges, including maritime security, counter-terrorism, and regional stability.
• Advocacy for Global South:
  • India uses its platform in G7 summits to advocate for Global South interests.
  • Key issues include development finance, technology transfer, and fair-trade practices.
  • India’s leadership in forums like the G20 and BRICS complements its engagement with the G7, bridging developed and developing nations.

Challenges and criticisms related to the G7

• Fallen GDP Share:
  • The combined share of G7 members in global GDP has declined from roughly 50% in the 1970s to around 30% in 2018.
  • This relative decline reflects the rise of other economies, such as China and India.
• Lack of Inclusion:
  • The economic growth of emerging economies has led to calls for a more representative global governance structure.
  • Critics argue that the G7’s membership does not adequately reflect the current global economic landscape.
• Cooperation Challenges:
  • Concerns exist about the G7’s ability to achieve cooperation within the group.
  • Disagreements among member countries can hinder effective decision-making.
• Leadership Discord:
  • At the 2019 summit, the then US President was often at odds with other G7 leaders.
  • His decision to skip a meeting on climate issues highlighted divisions within the group.
• Evolving Global Dynamics:
  • The G7 faces pressure to adapt to changing global dynamics, including the rise of new economic powers and geopolitical shifts.
• Need for Relevance:
  • To maintain relevance, the G7 must address these challenges and demonstrate its capacity to address pressing global issues.

Way Forward

• G7+ Formation:
  • Establish a new group called G7+ that expands beyond the current G7 membership.
  • Include a common Euro-zone representative to enhance representation from European countries.
• Inclusion of Emerging Economies:
  • Invite major emerging economies such as China, India, and Brazil to join the G7+.
  • This inclusion would better reflect the current global economic landscape in terms of both GDP and population.
• Addressing Global Challenges:
  • The G7+ should focus on addressing pressing challenges, including climate change, health security, and economic resilience.
  • Foster cooperation among diverse nations to find common solutions.
• Strengthening Multilateralism:
  • The G7+ can serve as a platform for promoting multilateralism and collaborative decision-making.
  • Encourage dialogue and consensus-building on critical issues.

Conclusion

India’s active engagement with the G7 is pivotal in tackling the complex economic and geopolitical issues confronting the group. Leveraging its strengths in the Indo-Pacific region, India contributes to discussions on climate change, global health, and digital cooperation. As the world order evolves, the G7’s partnership with India remains crucial for fostering inclusive and effective international cooperation.

Source: The Hindu

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Related PYQ

How will I2U2 (India, Israel, UAE and USA) grouping transform India’s position in global politics? [UPSC Civil Services Exam – 2022 Mains]

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Practice Question

Discuss India’s role in the G7, considering its impact on global standing and the challenges and opportunities it presents. [250 words]

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