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G7 meet

Topic covered: Bilateral, regional and global groupings and agreements involving India and/or affecting India’s interests

G7 meet.


Context:

The leaders of seven nations — the U.S., Germany, the U.K., France, Canada, Japan and Italy — met in Cornwall in south-west England, marking the 47th edition of the “Group of seven” summit.

India is a “natural ally” to work with the world’s richest G7 countries to fight against threats of authoritarianism, said Prime Minister Narendra Modi, speaking at a special outreach session for guest countries on “Open Societies and Open Economies” at the G7 summit that ended in Corbis Bay, U.K., on Sunday.

Background:

The United Kingdom had invited India, Australia, South Africa and South Korea to attend the G7 summit that was scheduled to be held in June as “guest countries”

About the G7 meet:

  1. The leaders of seven nations — the U.S., Germany, the U.K., France, Canada, Japan and Italy — met in Cornwall in south-west England, marking the 47th edition of the “Group of seven” summit.
  2. G-7 leaders agreed on Sunday to raise their contributions to meet an overdue spending pledge of $100 billion a year to help poorer countries cut carbon emissions and cope with global warming.
  3. Addressing the First Outreach Session of G7 summit, Prime Minister Narendra Modi on Saturday conveyed India’s commitment to “collective” solution to global health challenges.
  4. Prime Minister Modi called for “one earth, one health” approach which aims for unity and solidarity among the states of the world to deal with the pandemic.
  5. The Finance Ministers of the G7 had met on June 4-5 in the run-up to the summit and had agreed to backing a minimum global tax rate of 15% for multinational corporations, thereby setting the stage for MNCs to pay a fairer share of taxes in jurisdictions where they make money and profits, rather than playing governments in a race where they will compete on who will tax them the least and allowing MNCs to take advantage of “tax havens”.

What is G7?

The G7, originally G8, was set up in 1975 as an informal forum bringing together the leaders of the world’s leading industrial nations.

The summit gathers leaders from the European Union (EU) and the following countries: Canada, France, Germany, Italy, Japan, the United Kingdom and the United States.

The major purpose of the G-7 is to discuss and deliberate on international economic issues. It sometimes acts in concert to help resolve other global problems, with a special focus on economic issues.

How did G7 become G8?

  1. Russia was formally inducted as a member in the group in 1998, which led G7 to become G8.
  2. However, Russian President Vladimir Putin’s condemnable act of moving Russian troops into eastern Ukraine and conquering Crimea in 2014 drew heavy criticism from the other G8 nations.
  3. The other nations of the group decided to suspend Russia from the G8 as a consequence of its actions and the group became G7 again in 2014.

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InstaCurious:

Do you know about the Four Asian Tigers? Read Here

 

InstaLinks:

Prelims Link:

  1. Groups: G7, G8, G10, G15, G20, G24 countries.
  2. Geographical location of member countries.

Mains Link:

Discuss the relevance of G7 countries today. What are the reforms necessary to make the grouping more effective?