GROUP OF SEVEN (G7)

Why in News?

The 51st G7 Summit, held in Kananaskis, Canada and hosted by Canadian PM Mark Carney, brought together G7 leaders and guest heads, including the Prime Minister of India, to address global tensions and shifting geopolitical dynamics.

Key Outcomes of 51st G7 Summit (2025) Summit:

• Kananaskis Wildfire Charter: Adopted a “whole of society” approach, including Indigenous knowledge, sustainable forest management, and awareness campaigns (endorsed by India).
• G7 Critical Minerals Action Plan: Secure sustainable and resilient supply chains for critical minerals.
• Key Initiatives on Artificial Intelligence (AI): G7 GovAI Grand Challenge and a shared G7 AI Network (GAIN).

About G7:

• Formed in the year 1975 in response to economic and financial cooperation due to energy crisis.
• Members: United States, UK, France, Germany, Italy, Japan and Canada
  (Russia was a member from 1998 to 2014, during which the forum was called the G8. Russia’s annexation of Crimea in March 2014 led to its suspension from the group.)
• There are no formal criteria for membership,but participants are all highly developed democracies.
• Purpose and Agenda: Meets annually to deliberate on key global issues such as: Global economic governance, international security. Energy policy, etc.
• Structure:The G7 lacks a formal institutional structure. It does not have a charter or a permanent secretariat.
• Presidency:The presidency of the G7 rotates annually among the member countries.
• Significance:
  • Wealth:Control 60% of global net wealth
  • Growth:Drive 46% of global GDP
  • Population:Represents 10% of the world’s population.

Relevance of G7

• Innovations in Governance: The introduction of initiatives like the “Hiroshima AI Process” highlights the G7’s role in addressing emerging technological challenges.
• Ukraine Crisis: The G7 coordinated sanctions against Russia & supported Ukraine with financial packages from frozen Russian assets.
• Rise of China: China’s rise as a major economic and political power has altered the global balance. China’s Belt and Road Initiative (BRI) leading to a “debt trap” raises concerns amongst the G-7 nations.

Significance of G7 for India:

• Strategically Balancing the West and the Global South: India positions itself as a bridge between the industrialized West (G7) and the Global South.
• Economic & Technological Cooperation:g., India has been a strong proponent of initiatives like the G7’s PGII, which aims to invest in infrastructure in developing countries.
• Democracy & Strategic Weight: India’s democratic credentials and economic growth (4th largest economy) make its voice influential within G7 dialogues.
• Platform for Bilateral talks:g., Indian PM met Canadian PM to reset the deteriorating relations.