Should India join G7 – Burning Issues

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WHY THESE GROUPS?

These groups have been formed to tackle the global problems. Like- terrorism, climate change, financing etc.
They play crucial role in balancing those problems.
These groups also have the biggest economies of the world.

G7 is a collective of seven of the world’s most industrialized and developed economies.
G7 was formed initially to discuss economic and political concerns prompted by the 1973 oil crisis.
Its 1^stsummit was held at Rambouillet, France, in 1975.

Both the G7 and G8 are same groups.
Initially it was made by six members as G6- Italy, Japan, France, Germany, UK and USA.
In 1976, Canada
Russia joined the group from 1998 but it was fragmented out from the group in 2014 after annexation of Crimea.
Today, the G7 are reckoned as the 7 wealthiest and most advanced nations in the world.
All G7 countries have a per capita GNI of more than $40,000.
It is way more than the $12,056 per capita GNI required to be labelled a high-income country.
G7 countries also collectively comprise 65% of the global G₀₄D_-06-2P₀₂₀— at almost $40 trillion.

Calling the existing Group of Seven (G-7) club a “very outdated group of countries”, US President Donald Trump said on Saturday that-
He wanted to include India, Russia, South Korea, and Australia in the group;
Although it was unclear whether he wanted the expansion or to be permanent.
SO WHAT DOES US PRESIDENT DONALD TRUMP’S PITCH FOR INCLUSION OF INDIA INTO G7 MEAN FOR INDIA’S INTERESTS?

The rise of India, China, and Brazil over the past few decades has reduced the G-7’s relevance, whose share in global GDP has now fallen to around 40%.
Together, the G-20 countries make up around 80% of the world’s economy.
Joining G7 may not be in India’s best interests.
That’s because for one, G7, at its very basic, has been a grouping of the richest, most industrialised nations, with the per capita income ranging from a little over $34,000 (for Italy) to almost $63,000 (for the US).
India’s per capita income at a little over $2,000 places it in the ranks of lower middle income

Becoming a G7 member could also bolster Trump’s often repeated grouse that India doesn’t deserve the developing country tag.
Earlier this year, the US, ahead of Trump’s visit to
India, removed it from the list of developing countries citing its G20 membership & a share of more than 5% of global trade.
India’s share stands at 67% of global exports and 2.57% of imports.
The removal of developing nation tag by the US has also impeded the negotiation of a trade deal between the two countries — it was expected to be signed during Trump’s visit.
As a developing country, India got duty concessions worth $240 million in 2018.

Unlike the G20, which is more focused on economic issues, the G7’s focus is more on political issues —
Case in point, Trump’s pitch for G7’s expansion does not include China, the world’s second largest economy and which isn’t really a surprise given his frosty relationship with Beijing.
A G7 membership could potentially open the doors to commentary on India’s domestic politics and bilateral relations, such as on Kashmir.

India, along with the US, is already a member of the G20, which is a far more representative club of global economy.
That makes joining G7 obsolete — a view expressed even by Trump who labelled the grouping “outdated”.
India may also need to remind itself that the G7 at the current juncture is a house divided, with the US pitted against the remaining six countries — UK, Canada, Germany, Italy, France and Japan — and which may not serve India’s own interests well.