Why in the News?
- PM Modi was placed at centre stage for a group photograph at the G-7 Outreach Summit held in Italy.
- This marks India’s 11th participation in the G7 Summit and PM Modi’s fifth consecutive attendance.
About G-7 (Group of Seven)
- The G7 is an informal bloc of industrialized democracies comprising the United States, Canada, France, Germany, Italy, Japan, and the United Kingdom (UK).
- It convenes annually to address global economic governance, international security, and more recently, issues related to artificial intelligence (AI).
- Formation and Expansion:
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- Originally formed as the Group of Six in 1975 by the United States, France, Italy, Japan, the UK, and West Germany, with Canada joining in 1976.
- It was formed as a result of the oil crisis to stabilize global economic policies and international relations.
- The group’s formation coincided with the challenges of the Cold War era, aiming to address economic concerns such as inflation and recession exacerbated by the OPEC oil embargo.
- Key statistics about G7 countries:
- Wealth: They control 60% of the global net wealth.
- Growth: They drive 46% of the global GDP.
- Population: They represent 10% of the world’s population.
Russia’s Joining and Suspension
- Russia joined in 1998, transforming it into the G8, aimed at enhancing its international prestige and fostering closer ties with Western nations.
- Russia was suspended in 2014 following its annexation of Crimea, leading to ongoing tensions and challenges with both Russia and increasingly, China.
Functioning of the G7
- Unlike formal institutions like the United Nations or NATO, the G7 lacks a charter and secretariat.
- Its presidency rotates annually (Canada in 2025), responsible for setting the agenda and logistical arrangements for the summit.
- Policy initiatives are crafted by ministers and envoys known as Sherpas, who prepare discussions and agreements before the annual gathering.
- Non-member countries are occasionally invited to participate in G7 meetings.
Why G7 needs India?
- Economic Significance and Democratic Stability: India’s regular participation in G7 meetings highlights its economic importance and stable democratic framework.
- Rising Economic Power: With India poised to become the world’s fourth-largest economy, its involvement in global issues is increasingly crucial.
- Leadership in the Global South: Modi’s initiatives, such as the Voice of the Global South Summit, have bolstered India’s global standing.
- G20 Presidency: India’s recent presidency of the G20 demonstrated its ability to build consensus on contentious global issues.
- Neutrality and Strategic Partnerships: India’s neutral stance on Western concerns over China’s actions in the South China Sea and its economic policies enhances its partnership with G7 nations.
- Balancing with Russia and the West: As the West confronts Russia over Ukraine, India’s neutral stance positions it as a key ally while maintaining diplomatic balance.
Divergence within G7
- Geopolitical Tensions: The G7 nations often face disagreements and tensions over geopolitical matters, such as responses to Russian aggression, conflicts in regions like Ukraine, and strategic alliances with emerging economies.
- Economic Policies: Economic policies and trade relations are frequent topics of debate within the G7. Issues include trade tariffs, market regulations, financial stability, and economic cooperation in the face of global economic challenges.
- Climate Change: Addressing climate change and achieving environmental sustainability are critical concerns for the G7. Discussions typically focus on climate action commitments, renewable energy investments, and international cooperation on climate policies.
- Security and Defense: Security and defence cooperation, including responses to global terrorism, cybersecurity threats, and military alliances, are important agenda items for the G7.
- Technology and Innovation: Managing technological advancements, including AI regulation, digital governance, cybersecurity standards, and technological innovation policies, is another area of focus.
- Social Issues: Social issues such as gender equality, human rights, immigration policies, and global development aid are also part of the G7 agenda, reflecting broader societal concerns and international commitments.
PYQ:[2020] In which one of the following groups are all four countries members of G20? (a) Argentina, Mexico, South Africa and Turkey (b) Australia, Canada, Malaysia and New Zealand (c) Brazil, Iran, Saudi Arabia and Vietnam (d) Indonesia, Japan, Singapore and South Korea |
