Current Affairs

Group of 7 (G7)

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  • Categories
    World Affairs
  • Published
    27th Jun, 2022
  • Context

    India has been invited by the German Chancellor, hosting the G7 Summit 2022, to attain the summit.

    • The Prime Minister is expected to speak in two sessions that include Environment, Energy, Climate, Food Security, Health, Gender Equality, and Democracy, 
  • Background

    • The concept of a yearly forum for the world’s major industrialized countries emerged before 1973.
    • However, its progress accelerated after the 1973 oil crisis, where the US convened an informal gathering of finance ministers from West Germany, France and the United Kingdom ahead of a proper gathering.
      • G5:It later expanded to involve Japan to become the G5.
      • G6:Two years later in 1975, it included Italy, becoming the G6
      • G7:Canada joined in 1976 to create the G7.
      • G8:In 1998, years after the end of the Cold War, Russia was invited for the first time, marking a major turning point in world relations.
    • This ended in 2014 after Russia annexed Crimea with the group returning to its previous G7 lineup.
  • Analysis

    What is G7?

    • The G7 (Group of Seven) is an organization of the world's seven largest so-called advanced economies.
    • They are Canada, France, Germany, Italy, Japan, the UK and the United States.
    • Representatives of the European Union are always present at the annual meeting of the heads of state and government of the G7.

    About G7 Summit 2022:

    • Germany is presiding the G7 Summit in 2022.
    • German Chancellor Olaf Scholz has invited India, along with Argentina, Indonesia, Senegal, and South Africa to the 2022 Summit as partner countries.
    • Ukrainian President Volodymyr Zelenskyy, will take part virtually on June 27, the G7 presidency has announced.
    • International organizations, including the United Nations, the World Health Organization (WHO), the World Trade Organization (WTO), the International Monetary Fund (IMF), and the World Bank, are also participating in the Summit.
  • G7 history:

    • As the world reeled from the first oil shock and subsequent financial crisis, the heads of state and government of the six leading industrial countries met in 1975 at the Chateau de Rambouillet, France, for the first time to discuss the global economy.
    • They were joined in 1976 by Canada and in 1998 by Russia.
    • Following the Russian annexation of Crimea, the G7 nations decided in March 2014 to meet without Russia until further notice.
  • Significance of G7:

    • As of 2022, G7 countries make up 10% of the world’s population.
    • Seven nations cumulatively contributes to 31% of global GDP.
    • Also, contributes to 21% of global carbon dioxide emissions.
    • Most G7 countries also had a high level of gross debt, especially Japan (263% of GDP), Italy (151%) and the US (133%).
  • India’s stake in this year G7 summit

    • This year’s invitation comes at a time when India refrained from criticizing Russia with on Ukraine-Russia war and building close contacts with Russia for its oil imports.
    • Further, this year invitation is also a continuation of India long term desire of becoming part of global high table of diplomacy.
  • Benefits of the forum for India

    • Dialogue with EU: Between India and the European Union, there has been tension over many issues such as data security, changing the political climate of Jammu and Kashmir. The G-7 group will provide a separate forum for dialogue between India and the European Union.
    • UNSC Membership: The three countries of the group are permanent members of the UN Security Council, which provides international political power to the group, which India can benefit from.
    • Promoting democracy: Through this organization, India can develop policies such as democracy in international institutions around the world.
    • Increasing job opportunities: Increasing trade relations with these countries will provide job opportunities for the people of India.
  • Conclusion

    As China is seemingly the greatest obstacle to India’s global ambitions besides threat to the territorial sovereignty, a better relation with the West is a requirement for India. Looking east and mobilizing the south have been India’s default geopolitical orientations. While Delhi continues to strengthen its partnerships in Asia and the global south, a more productive partnership with the West helps secure a growing array of India’s national interests and adds a new depth to India’s international relations. In this scenario, G7 summit and invitation to India is a welcome development.G-7 summit is an opportunity to expand the global dimension of India's growing partnerships with the US and the West.

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