G-7 – Summit,Issues,India,Importance

The 49th meeting of G-7 was held in Hiroshima, Japan. Countries like India and Australia were also invited to the summit. Moreover, India gave a 10-point action plan to address health, food etc. The meeting assumed an essential role in the wake of recent geopolitical events.

What is G-7?

G-7 Countries
  1. It is a leading group of the world’s most industrialized nations that dominate international affairs and the global financial system. Its member countries are US, UK, France, Germany, Japan, Italy and Canada. Russia which is a member of G-8 and South Korea are not part of G-7. EU is not a member but attends the annual summit of G-20.
  2. 1/10th of the global population lives in the G7 countries. Also, these countries contribute to 46% of the world’s GDP and 26% of global carbon dioxide emissions. Recently, G-7 members agreed to a global minimum tax and launched a global Apollo program for research in the climate areas.

Outcomes of the Summit

  1. All the countries agreed to establish a Coordination Platform on Economic Coercion to counter any attempts to “weaponize” trading and supply chains in ‘critical and emerging technologies’. They all opted for de-risk from China.
  2. They are developing and adopting global standards for Artificial Intelligence Technology.
  3. Members agreed to achieve net-zero emissions by 2050. They also reinforced their commitment to limit global warming to 1.5°C.
  4. G7 members produced a Hiroshima Action Statement on food security. This was aimed to ensure safe and secure food for all.

India and G-7

  1. Recently, India was also invited to the 49th meeting of the G-7. G-7 is consistently showing interest in India and India might become a member if there is an expansion of the Group. India might also help bridge the gap between the Global South which is less developed and the industrialised nations of the G-7.
  2. After the global financial meltdown of 2008, china has opted for an aggressive foreign policy. Security of navigation and smooth flow of the supply chains is vital for the G-7 countries. Hence, China’s aggression is one of the key issues of G7 summits. Therefore, India could be a potential partner to counter Chinese influence.
  3. G7 will also help to enhance India’s voice at international forums. Also, it will aid further
    strengthening bilateral relations with the member and influential countries such as the US, France etc.

However, there are some conflicts of interest with the countries of the G-7 which need increased participation and Cooperation. These are:

  1. With regards to Russia, most of the G-7 countries condemn the recent war. However, Russia is a time-tested friend of India and the Indian stand has been diplomatic.
  2. WTO negotiations like food subsidies are opposed by the G-7 countries, however, a developing country like India cannot afford to give away these subsidies.
  3. G-7 countries are also against the reforms in multilateral organisations like UNSC, WTO, IMF, and World Bank. However, India is pro-reform at the multilateral level.
  4. G-7 often does not fulfil its commitment and promises. Measures like Partnership for Global Infrastructure and Investment, Paris Deal are not being implemented fully in the way they are designed to be implemented.

Importance of G-7

  1. All of the G-7 members combined share 26% of the global GDP and are the major source of investments in the developing and least developing countries. Thus, they are vital for solving the world’s major economic and financial problems like financial crises, trade-related issues, etc. Their cooperation is a must for the same.
  2. The G-7 countries are the political and military might as well. They have a key influence over organisations like UNSC, NSG etc. They are vital to discuss and prevent issues like conflict among states, nuclear proliferation etc.
  3. G-7 countries have been presented as the model of democracies and good governance worldwide as most of them are democracies. They lay a path for other countries to improve their democratic setup and ensure a smooth flow of services to the citizens.
  4. Global Governance is void without the cooperation of G-7 countries because they are one of the most influential groups in the world. Even they have led the foundation of global governance with groups like the Finacial Action Task Force (FATF) and proposed a global minimum tax to avoid round-tripping.

Issues with G-7

  1. The G-7 has limited representation and key players like China, India, Russia, Brazil etc. The world has seen the emergence of other poles of power like China, and the European Union. However, they are excluded from this elite group of decision-making.
  2. G7 countries are having different and even conflicting national interests, policy formulations, and responses to global issues. This leads to disagreements between them which does not allow them to reach a consensus so that global order could be formulated accordingly.
  3. There are many alternative forums like the UN, G-20 and multilateral organisations IMF, WTO etc. which are capable of consensus building and dispute settlement. They even include big players like India, China etc. Hence, these organisations are more capable of leading the world order and formulating international policies.
  4. G-7 countries are the countries which have varied relationships with other nations and different domestic politics. Thus, the decision-making in the G-7 is hindered by various factors which affect the local atmosphere of these G-7 countries. Hence, these countries need to take up these factors into mind before stepping into an agreement.

Conclusion

Overall, the G-7 is still effective and powerful to affect the geopolitical and geoeconomic sphere of the world. It would be largely beneficial for India to maintain a close and cordial relationship with these countries. Meanwhile, the national interest should be the priority of New Delhi. This would not only ensure the development of India in fields like cyber security, AI, Green Energy, Space etc. but also be helpful for the G-7 Countries in areas like health, digital payments etc.

G-7 need to work on its internal as well as external weaknesses as it is one of the most influential groups in the world. Generating a comprehensive, inclusive and peace-promoting policy would be helpful for the entire humanity. The organisation should pay more attention to the hot issues of the world like climate change, freedom of navigation etc.

Also Read

Indian Space Policy 2023-

India-US Summit-

Liberalised Remittances Scheme (LRS)

United Nations – Reforms and UNSC

1 thought on “G-7 – Summit,Issues,India,Importance”

Leave a Comment