Syllabus:
GS2: Bilateral, Regional and Global Groupings and Agreements involving India and/or affecting India’s interests.
Context:
The 2025 annual G7 Summit began in Alberta, Canada, against the backdrop of rising tensions in the Middle East.
More on the News
- The continuing war between Russia and Ukraine has been listed as an agenda item.
- After months of tension, Carney invited PM Modi to the G7 at the start of June, signaling a thaw in India-Canada ties.
- As G7 President, the Prime Minister of Canada aims to assert himself as a strong leader against Trump and boost Canada’s global standing while reducing U.S. dependence.
Top 5 Issues Shaping This Year’s G7 Agenda
- Trump Factor: His past G7 presence caused tensions; his role remains unpredictable.
- Trump-Proofing: Canada’s PM Carney avoids a joint statement to reduce disruptions.
- Middle East Tensions: Iran-Israel conflict adds urgency to global security talks.
- Russia-Ukraine War: G7 reaffirms support for Ukraine despite Trump’s criticism.
- India Invited: PM Modi’s attendance marks improving India-Canada ties.
Group of Seven (G7)
- The Group of Seven (G7) was founded in 1975 in response to the oil crisis and includes Canada, France, Germany, Italy, Japan, the United Kingdom and the United States.
- The European Union, which has observer status, is excluded from the rotating chairmanship. With the inclusion of Russia in 1998, the group temporarily became the G8.
- In 2014, the group returned to the G7 format following its annexation of Crimea.
- The G7 originally dealt exclusively with issues related to the development of the global economy.
- The G7, like the G20, is not a formal international body and lacks a permanent secretariat. The Presidency country plays a key role due to its informal setup.
- The Presidency organizes the summit and sets the agenda, enabling G7 leaders to meet, discuss global issues, and align on shared goals.
Key Achievements of G7
- 1997: The G7 countries agreed to provide $300 million to the effort to contain the effects of the reactor meltdown in Chernobyl.
- 2002: Members decided to launch a coordinated response to fight the threat of AIDS, Tuberculosis and Malaria.
- 2015: The Global Apollo Program was launched to combat climate change by advancing clean energy R&D.
- 2021: The 2021 G7 summit launched the B3W initiative to mobilize $40+ trillion for infrastructure in developing countries.
Global Importance of G7
- It is bound by shared values like democracy, pluralism and rule of law, often defending the rules-based global order and human rights.
- Its talks and communiqués often shape global agendas across platforms like the G20, UN, and IMF.
- It provides a key platform for leaders to unite on urgent global issues impacting lives worldwide.
- It offers a platform for guest nations, including emerging economies and the Global South, to share their concerns and priorities.
Significance of G7 for India
- It provides the forum for strengthening relations with the world’s top leading economies.
- It positions India as a global mediator, regional manager, and key player against the rising China threat.
- India’s involvement in the G7 opens doors to advanced technologies and new market opportunities.
- The G7 nations play a key role in shaping global climate policy; stronger ties with them could support India in cutting emissions and adapting to climate change.
Limitations of G7
- It is often criticized for being an exclusive club of wealthy, industrialized nations, excluding major global players like China, India, and Russia.
- It’s economic dominance has declined significantly since its formation, with its share of global GDP falling from 66% to around 30%.
- It’s decision-making processes lack transparency and accountability, leading to criticism about the group’s legitimacy and effectiveness.
- It lacks a formal charter or secretariat, and its non-binding decisions depend on member approval, limiting its influence.
Mains Practice Question:
The G7 plays a significant role in shaping global governance, yet its influence is constrained by structural and geopolitical limitations. Critically examine the importance and limitations of the G7 in today’s multipolar world.