G7 and India

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Last Updated: G7 and India (June 2025)

G7 and India

This article deals with ‘G7 and India – UPSC.’ This is part of our series on ‘International Relations’, which is an important pillar of the GS-2 syllabus. For more articles, you can click here.

Introduction

The G7 is an informal forum of 7 leading industrialized nations, which dominate global trade and the international financial system.  These 7 nations are

  1. UK
  2. Canada
  3. France
  4. Germany
  5. Italy
  6. Japan
  7. The USA
G7 and India

The European Union (EU) also participates in G7 summits but is not a formal member. Occasionally, other countries, including India, are invited as guest participants.

Notably, the G7 lacks a permanent secretariat or a formal legal charter. It is an informal consultative platform.

Note: It was previously known as G8. But Russia was expelled after the Annexation of Crimea.

History

The G7 traces its origin to 1975, when the leaders of six industrialised countries (excluding Canada) met in response to the OPEC oil crisis and ensuing global recession.

  • 1976: Canada joined, forming the G7.
  • In 1998, Russia joined the group in the post-Cold War era, forming the G8.
  • 2014: Russia was expelled due to the Crimea annexation; the group reverted to the G7.

The group originally focused on macroeconomic issues, but the G7 gradually broadened its agenda to include:

  1. International Security
  2. Climate Change
  3. Counter-terrorism
  4. Health and Education
  5. Human Rights and Development

Latest Summit (2025 – Canada)

  • Host: Canada
  • Venue: Kananaskis, Alberta
  • India’s Participation: India has been invited to every G7 Summit since 2019, underscoring its growing global stature. Although initial hesitation was noted, Canada eventually extended an invitation to Prime Minister Narendra Modi.

Significance of the Group

Economic Significance

  • Represents ~40% of global GDP
  • Home to ~10% of the global population

Political and Diplomatic Power

  • The meeting of the G7 brings together major liberal democracies, creating a powerful bloc that influences global political discourse

Climate and Sustainable Development Leadership

  • G7 countries are at the forefront of climate negotiations and financing green transitions.

Importance of the G7 for India

Global Recognition

  • Regular invitations signal India’s growing influence in global governance and diplomacy.

Counter China

  • Close security cooperation with G-7 countries can counter Chinese expansionism in the Indian Ocean.

Economic and Developmental Gains

  • Cooperation with G7 countries opens avenues for advanced technology transfers, digital economy partnerships, and innovation in critical sectors like AI, clean energy, and healthcare.

Support for Multilateral Reform

  • India leverages the G7 platform to advocate for reforms in institutions like the UN Security Council, WTO, and IMF, to make them more representative.

Bilateral Engagements

  • G7 Summits provide opportunities for high-level interactions with major powers such as the US, UK, France, and Japan, bolstering bilateral ties.

Humanitarian Assistance and Development Aid

  • The G7 is one of the largest sources of Official Development Assistance (ODA) to developing countries.

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