Why in the News?

India had participated as an Outreach Country in 51st G7 Summit (2025) held in Kananaskis, Canada.

More on the news

• On the sidelines of the Summit, India-Canada revived their bilateral relation by-
  • deciding on early return of High Commissioners; and 
  • resuming negotiations on Early Progress Trade Agreement (EPTA)- potentially setting the stage for a full Comprehensive Economic Partnership Agreement (CEPA).
• 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).

Contemporary Relevance of G7 

• Global Security and Conflict Response
  • Ukraine Crisis: The G7 coordinated sanctions against Russia & supported Ukraine with financial packages from frozen Russian assets.
  • China Policy:  In 2025, the G7 condemned China's coercion toward Taiwan, notably dropping reference to the 'One China policy' (People's Republic of China (PRC) as the sole legal government of China).
    • Also, the G7 launched The Partnership for Global Infrastructure and Investment (PGII)  which aims to counter China's Belt and Road Initiative.
• Influences agendas at international institutions: Like the UN, IMF, and World Bank.
  • Tax Governance: It supports the OECD/G20 Inclusive Framework on Base Erosion and Profit Shifting to ensure fair, stable global tax rules and limit harmful corporate tax competition.
  • Anti-Money Laundering: The Financial Action Task Force (FATF) was established in 1989 by the G7 to examine and develop measures to combat money laundering. 
• Sustainable and Digital Governance: E.g., Global Partnership on Artificial Intelligence (GPAI) and the Hiroshima AI Process, promoting ethical AI, transparency, data protection, and cybersecurity. 
  • Also, The G7 Climate Club promotes global cooperation to achieve net-zero by 2050.
• Engagement with the Global South: Through outreach to Non-Members like India, South Africa, Brazil, etc.
• Acts as a "club of democracies": It is a core alliance championing a 'rules-based international order', human rights, and democratic norms. 
  • E.g., It serves as a collective counterweight to authoritarian countries like China and Russia.

Hurdles for the G7

• Declining Economic Dominance: E.g., G7's share of global GDP has fallen from ~70% in the 1980s to ~44% (2021), while emerging economies (e.g., China, India) now drive growth.
• Consensus-Based Decision that Obstructs Decisive Action: E.g., 51^st G7 failed to issue a strong statement on the Ukraine war after resistance from US.
• Lack of Legal Authority: As an informal forum without a permanent secretariat or binding legal framework, the G7's decisions lack enforceability, limiting its capacity to drive collective action effectively.
  • E.g., 2025 Kananaskis Wildfire Charter relies on voluntary compliance.
• Underrepresentation of t Global South: The absence of major emerging powers like India, Brazil, Indonesia, and Nigeria and blocs like African Union (AU).
• Competition from Alternative Blocs: BRICS Plus offers as an alternative to G7 with better represtation.

Conclusion

G7 countries should be more inclusive in its approach and set up agenda which is relevant to the contemporary world order. For India, these challenges are also opportunities—to advocate for fairer, more inclusive decision-making and to bridge the gap between the Global South and industrialized nations.