G7 Summit in Canada, PM Modi will Assess a Divided West

The ongoing G7 summit in Canada is unfolding amidst a complex geopolitical landscape, with significant implications for India and the global order.

About G7

• Origins: The Group was established as a platform for economic and financial cooperation in response to the 1973 energy crisis. 
  • The G7 originated from a 1973 meeting of finance ministers and central bank governors in Paris, France.  
  • 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. Under this, the value of the US dollar was fixed against gold.

Issues with G7 Summit

• Beyond Distractions: While anti-India protests by Khalistani groups and US President Donald Trump’s repeated offers to mediate India-Pakistan peace are present, the summit’s core focus is on deeper geopolitical issues.
• Internal Divisions: The G7, once a symbol of unity among leading democracies, now highlights profound internal contradictions across areas like trade, technology, climate, and regional security in Europe, the Middle East, and the Indo-Pacific.
• India’s Platform: Despite not being a member, India’s regular participation offers a critical platform for Prime Minister Narendra Modi to advance national interests, elevate India’s diplomatic profile, and contribute to shaping a new multipolar order. 
  • It’s an opportunity for Modi to directly assess Western dynamics

Historical Western Contestation

• Beyond a Monolith: Indian elites have often viewed the West as a monolith, but history reveals significant contestation among Western powers for centuries, driven by competition for colonies, resources, and markets.
• Cold War and Aftermath: The Soviet Union’s emergence complicated these rivalries. While Cold War unity against communism created a seemingly unified West, intra-Western differences, though tactical, persisted. 
  • The Soviet collapse didn’t immediately disrupt coherence, but fault lines soon emerged.
• France’s Multipolar Vision: By the mid-1990s, France warned against American “hyperpower” and championed a multipolar world, even reaching out to India. This vision predates Moscow’s, Beijing’s, or even Delhi’s advocacy for multipolarity.
• Deepening Middle East Divides: Divisions are now deeper, especially regarding the Middle East, where Europe is increasingly critical of Israeli policies, while the US remains staunchly supportive. 
  • This contrasts with earlier disagreements, like France and Germany opposing the 2003 Iraq invasion.

Impact of Trump’s Unilateralism

• 2018 G7 Tensions: The 2018 G7 summit, also in Canada during Trump’s first term, saw significant tension due to his tariffs on European allies, culminating in an iconic image of leaders confronting him. Trump’s early departure and accusations against Prime Minister Justin Trudeau underscored his unilateral approach.
• Return to American Unilateralism: With Trump’s return to power, a renewed shift toward American unilateralism is evident. His “America First” agenda prioritizes US interests, often at the expense of collective Western goals.
• Critique of European Liberalism: Trump’s “anti-woke” campaign has broadened into a critique of European liberalism, and his support for far-right parties across Europe signifies a new level of political intervention, further straining Western unity.

Trump’s Disruptive Trade Policies

• Tariff Impositions: The Trump administration has imposed sweeping tariffs, including a 10% duty on most G7 partners, with threats of further escalation, particularly targeting Canada.
• Challenge to Rules-Based System: These actions alarm European and Canadian leaders, who view them as a direct challenge to the G7’s long-championed rules-based international trading system.
• Strained US-Canada Ties: US-Canada ties are particularly strained due to Trump’s inflammatory comments, including questioning Canadian sovereignty and casual references to annexation. 
  • Prime Minister Mark Carney is actively working to rally G7 leaders to counterbalance Washington’s assertiveness.

Geopolitical issues 

• Ukraine War Uncertainty: While the G7 continues to support Ukraine and sanction Russia, growing uncertainty about the depth of US commitment under Trump is a major source of discord. European leaders are anxious about his unpredictability and transatlantic solidarity.
• Middle East Crisis: Recent developments in the Middle East, especially Israel’s strike on Iran, have heightened summit urgency but also exposed divergent positions on oil, security, and diplomacy among G7 members.
• Defense Spending Demands: Trump’s demand for G7 partners to raise military budgets to 5% of GDP (well above NATO’s 2% guideline) has met resistance, with most members citing domestic constraints and questioning the need for such an aggressive ramp-up.
• Climate and Digital Policy Divides: Disputes also linger over climate change, where Trump’s skepticism about ambitious targets and global digital regulation frameworks has hampered consensus despite European pressure.

Challenges to Multilateralism

• Absence of Joint Communiqué: Acknowledging these divisions, Prime Minister Carney has abandoned the tradition of a joint communiqué, opting for a summary note to reflect the lack of consensus.
• Era of Renewed Nationalism: The 2025 summit powerfully highlights the difficulties facing multilateralism in an era marked by renewed nationalism, where major powers often act based on narrow transactional interests.

India’s Strategic Imperatives

• Beyond Distractions: For India, the Khalistani protests and Trump’s remarks on Kashmir are minor distractions. Prime Minister Modi’s invitation underscores India’s growing importance as a G7 partner.
• Navigating Western Contradictions: Modi should focus on repairing ties with Canada, re-engaging with Trump, and critically assessing the internal contradictions of the West.
  • The goal is to minimize fallout for Indian interests and deepen bilateral partnerships with G7 members.

Conclusion

Ultimately, India’s role is to position itself as a key stakeholder in shaping the new global architecture that will inevitably emerge from the current international turbulence.