At G7 outreach summit, PM Modi moots Impact initiative for stronger support for vulnerable nations during crises

At the G7 outreach summit, Prime Minister Narendra Modi on Wednesday proposed 'Impact initiative' to support mechanisms that help developing countries absorb shocks from global disruptions.

Noting that the most vulnerable countries should not bear the burden of crises alone, Modi proposed combining "G7 capital, India’s talent, and the ownership of Global South countries" to establish an International Mobilisation Partnership for Accelerating Connectivity and Trade (Impact).

International financial institutions should develop support mechanisms that help developing countries absorb these shocks and maintain economic resilience, Modi further said at the G7 Summit in France.

The American-Israeli war on Iran and resultant global energy and economic crises have dominated the G7 Summit. While the United States has been relatively protected from the worst effects of the war due to energy self-sufficiency, the developing world that relies on West Asia for energy needs has suffered the most.

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Asia is the hardest-hit region as most of the West Asia was a major source of oil and gas for Asian countries. In the wake of the near-total halt of West Asian supplies, countries have been scrambling to secure alternative supplies.

Expressing appreciation for the central focus assigned to this topic by the host nation, the Prime Minister added, "It is good that the French G7 Presidency has given importance to this topic."

Challenging standard financial frameworks to advocate for a more inclusive and human-centric paradigm on the world stage, PM Modi articulated a critical philosophical shift regarding how nations measure progress.

"The reality today is- when it comes to growth, the question should not be about GDP or trade numbers," the Prime Minister observed in his post.

Underscoring India's ongoing advocacy for equitable international development, PM Modi concluded by stating that policymakers must address the core purpose of financial advancement, noting, "The real question is - Growth for whom, with whom and in what direction?

"Stepping up India's diplomatic outreach at the ongoing G7 Summit, PM Modi is scheduled to hold a significant trilateral meeting with European Council President Antonio Costa and European Commission President Ursula von der Leyen on the sidelines of the event.

Following these high-level talks with the EU leadership, the Prime Minister will meet German leaders for a bilateral discussion. This meeting will precede his participation in a strategic working lunch focused on  "Ensuring the safe, rapid and effective deployment of artificial intelligence," which stands out as one of the key themes of this year's summit.

Later in the day, the diplomatic focus will shift towards a highly anticipated engagement, as PM Modi is slated to hold a bilateral meeting with US President Donald Trump. This encounter is being closely watched by global observers amid intensive discussions on global security, trade, technology, and geopolitical developments.

During their wide-ranging talks on Wednesday, PM Modi and US President Donald Trump will deep dive into bilateral ties, with a primary focus on expediting the proposed bilateral trade deal.

The two leaders are also expected to explore robust ways to boost cooperation in the defence, energy, and critical minerals sectors. A day ahead of their meeting, which is taking place amid continuing strain in bilateral ties, the two leaders exchanged pleasantries and held a brief conversation at a gathering of G7 leaders. This impromptu interaction marked their first in-person encounter in 16 months.

Both PM Modi and Trump are currently in the French commune of Evian-les-Bains for the G7 Summit. Providing a broader context to these diplomatic engagements, this picturesque French city has transformed into the nerve centre of global diplomacy as the high-stakes summit enters its critical phase.

With India participating as a key Partner Country, the international community is increasingly looking towards New Delhi to navigate and resolve complex global bottlenecks. This growing role in shaping top-tier discourse reflects India's steadily expanding diplomatic footprint and its proactive stance across premier global forums.

Underscoring this geopolitical position during a high-profile outreach session at the summit yesterday, PM Modi emphasised the foundational role of 'trust' in forging resilient international partnerships, particularly within a deeply interconnected global landscape.

The Prime Minister highlighted India's consistent adherence to a 'humanity-first approach', noting that this ethos is vividly reflected in major India-led global initiatives. He pointed to trailblasing projects such as the International Solar Alliance, the Coalition for Disaster Resilient Infrastructure, the Global Biofuel Alliance, Mission LiFe, and the 'Ek Ped Maa Ke Naam' campaign as prime examples of this philosophy.

PM Modi further articulated that India's core blueprint for international collaboration remains deeply anchored in the timeless civilisational philosophy of 'Vasudhaiva Kutumbakam'--the profound belief that the world is one family.

Beyond his highly anticipated interaction with the US President and his engagements with the European Union leaders, PM Modi's packed itinerary for the day also features a crucial G7 working session themed "Reviving balanced, inclusive and sustainable economic growth for the benefit of all.

"The Prime Minister will add further depth to his European outreach through a targeted bilateral dialogue with German Chancellor Friedrich Merz. This intense schedule follows the rapid pace of diplomacy set earlier yesterday, when PM Modi successfully concluded a flurry of bilateral meetings on the sidelines of the summit.

He held productive talks with Canadian Prime Minister Mark Carney, United Kingdom Prime Minister Keir Starmer, and United Arab Emirates President Sheikh Mohamed bin Zayed Al Nahyan.

Expanding India's outreach further, PM Modi also engaged in structured discussions with Kenyan President William Ruto, Egyptian President Abdel Fattah El-Sisi, Japanese Prime Minister Sanae Takaichi, and South Korean President Lee Jae-Myung.

With inputs from agencies