- It is an intergovernmental economic group of 7 largest advanced economies such as Canada, France, Germany, Italy, Japan, the UK, and the US.
- EU is also represented within the G7 as an invitee.
- These countries are the seven major advanced economies as reported by the IMF.
- Formerly called G8 with Russia in it, but due to the Crimean crisis, Russia
was ejected from the group.
- The organization was founded to facilitate shared macroeconomic initiatives by its members in response to the collapse of the exchange rate in 1971.
- The G7 summit is held annually to discuss economic policies, while the G7 finance ministers meet after 6 months.
- For the first time in the last 44 years, the Gender Equality Advisory Council was set up.
- The council aims to convince private sector companies to set up such a council and eradicate the problem of gender inequality from the root.
- It carries out its mandate advising the G7 Presidency and recommending concrete actions for the G7 to advance gender equality and women’s empowerment across all areas of the G7’s work.
- The heads of these countries hold an annual G7 summit with the European Union and other invitees.
- India was invited to the 2021 G7 summit as a special guest.
- The presidency of G7 meetings is held by each of the seven countries in turn, each year. The country holding the presidency is responsible for organising and hosting the meeting.
- Japan holds the G7 presidency for 2023.
- Nature – Together the member countries represent 40% of global GDP and 10% of the world’s population.
- Unlike other bodies such as NATO, the G7 has no legal existence, permanent secretariat or official members.
- It has no binding impact on policy, and all decisions and commitments made at G7 meetings need to be ratified independently by governing bodies of member states.
- Communique– The G7 leaders adopted a communique to jointly defend universal human rights and democratic values, the rules-based multilateral order and the resilience of democratic societies.
- Ukraine– The G7 leaders re-emphasised their condemnation of Russia’s illegal and unjustifiable war of aggression against Ukraine.
- G7 countries have pledged and provided EUR 28 billion in budget aid and are strongly committed to supporting Ukrainian reconstruction through an international reconstruction plan.
- Energy and food security– The G7 leaders committed to phase out our dependency on Russian energy.
- They ensured to secure the energy supply and reduce price surges by exploring additional measures such as price caps.
- The G7 countries will also increase global food and nutrition security through the Global Alliance on Food Security.
- Investment – The G7 countries have launched the Partnership for Global Infrastructure and Investment (PGII), a joint initiative to fund infrastructure projects in developing countries.
- Building on their existing partnership with South Africa, G7 will work towards new Just Energy Transition Partnerships with Indonesia, India, Senegal and Vietnam.
- Climate and the environment- The G7 leaders endorsed the goals of an international Climate Club to accelerate the implementation of the Paris Agreement.
- India and G7 – India has been a special guest of the G-7 since 2003. It has maintained its independent course, especially on political issues.
- The G7 condemned “rising authoritarianism”, net shutdowns, manipulation of information, and rights violations.
- These are areas the Indian government has often been criticised for in recent years.
- However, India signed off on the joint statement by G-7 and guest countries on “open societies.”
- G7 Global Corporate Tax Deal – G7 countries have backed the proposal to impose a common global corporate tax.
- The tax proposal endorsed by the G7 countries (US, UK, Germany, France, Canada, Italy and Japan) has two parts.
- The agreement made will be discussed in detail at the upcoming meeting of G20 financial ministers and central bank governors.
- First part – Countries around the world should tax their home companies’ overseas profits at a rate of at least 15%.
- Second part – This allows countries to tax a share of the profits earned by companies “that have no physical presence but have substantial sales.”
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