Context: Recently, Prime Minister of India has departed for Apulia, Italy this evening to attend the G7 summit. Earlier, in his departure statement, the Prime Minister said that the government is committed to consolidating the India-Italy strategic partnership and bolstering cooperation in the Indo-Pacific and the Mediterranean regions.

G7 Summit: Agenda

• Ukraine war: With a view to supporting Ukraine’s current and future needs in the face of a prolonged defense against Russia, the G7 will launch Extraordinary Revenue Acceleration (ERA) Loans for Ukraine, in order to make available approximately $50 billion in additional funding to Ukraine by the end of the year.

• Stopping the war in Gaza: The G7 will also focus on the Middle East, particularly the Gaza conflict. The US President has proposed a plan for an immediate ceasefire between Israel and Hamas.

• Migration: Italy wants Europe to help reduce illegal migration from Africa. Under the Mattei plan, significant investments in African infrastructure, development, and energy have been planned.

• Climate change: The G7 aims for a 40-42 percent emission reduction by 2030, but current policies suggest only a 19-33 percent reduction is likely. It will explore new strategies to meet climate goals.

• The G7  nations have committed to promote concrete infrastructure initiatives such as the India-Middle East-Europe Economic Corridor (IMEC) and PGII (Partnership for Global Infrastructure and Investment) initiatives.

• Importance of the Indo-Pacific for G7: The Indo-Pacific is of strategic significance, particularly for Japan, the only G7 member located in the region. 

What is the G7 Summit?

• The G7 originated from a 1973 meeting of finance ministers and central bank governors.

• This meeting was convened in response to major economic challenges of at time –an oil crisis, rising inflation and collapse of the Bretton Woods system.

• The first Summit of Heads of State and Government was held in 1975 in Rambouillet, France.

• Members: France, United States, United Kingdom, Germany, Japan, Italy, and Canada, and the European Union.

The formation of G7 served two purposes;

• First, to address economic, political and security differences and manage crises among the members.

• Second, to reinforce the dominance of the Western democratic and liberal economic model in the global order.

• The G-7 does not have a formal constitution or a fixed headquarters. The decisions taken by leaders during annual summits are non-binding. 

Timeline

• Canada joined the group in 1976, and the European Union began attending in 1977.

• The G-7 was known as the ‘G-8’ for several years after the original seven were joined by Russia in 1997.

• The Group returned to being called G-7 after Russia was expelled as a member in 2014 following the latter’s annexation of the Crimea region of Ukraine.

Why has India been invited?

• With a GDP of $3.94 trillion, India boasts an economy larger than four G7 members.

• India plays a crucial role in the Indo-Pacific region countering Chinese dominance.

How relevant is it today?

• The G-7’s share of global GDP is around 47% and only five—the US, Germany, Japan, UK, and France—are among the top 7 global economies, while Italy and Canada have been upstaged by China and India.