India @G7 table: Where power meets climate purpose

India's strategic location in the Indian Ocean and active participation in Quad (India, the USA, Japan, Australia) makes it vital to G7's Indo-Pacific goals
A solar power plant in Telangana. As on January 20 2025, India’s total non-fossil fuel based energy capacity  reached 217.62 GW
A solar power plant in Telangana. As on January 20 2025, India’s total non-fossil fuel based energy capacity reached 217.62 GWWikimedia Commons
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India’s invitation to attend the forthcoming G7 Summit in Canada beginning Sunday is not merely ceremonial — it’s a strong affirmation of the country’s growing clout as a global economic and geopolitical actor. As the world’s fifth-largest economy and a leading voice for the Global South, India is increasingly central to global discussions around climate action, energy security, supply chain resilience, and reforming global governance.

India’s participation at the G7 comes at a time of overlapping global crises — geopolitical tensions, climate emergencies, and economic realignments. The theme of this year’s summit, “Building Future-Ready Partnerships,” directly intersects with India’s strengths in sustainable development, clean energy technologies, and its leadership in multilateral forums such as the G20 and BRICS.

Although third-largest emitter of carbon dioxide after China and the U.S., India also ranks among the lowest in per capita emissions. According to the International Energy Agency (IEA), India’s per capita CO₂ emissions stood at 1.9 tonne in 2022, significantly below the global average of 4.7 tonne. Despite its development needs, India has made ambitious climate commitments, aiming to achieve net-zero emissions by 2070 and to meet 50 per cent of its electricity demand from non-fossil sources by 2030.

Per Capita CO₂ Emissions (2022): It clearly shows India’s emissions are significantly lower than global averages and major emitters like the U.S. and China—supporting India’s case as a responsible climate
actor despite its size.
Per Capita CO₂ Emissions (2022): It clearly shows India’s emissions are significantly lower than global averages and major emitters like the U.S. and China—supporting India’s case as a responsible climate actor despite its size.
FDI Inflows into India from G7 Countries (FY 2023–24): Highlights major contributions from the U.S., Japan, Germany, and the UK-demonstrating India’s growing economic ties with G7 partners.
FDI Inflows into India from G7 Countries (FY 2023–24): Highlights major contributions from the U.S., Japan, Germany, and the UK-demonstrating India’s growing economic ties with G7 partners.
India’s Renewable Energy Capacity Growth (2014–2024): Shows rapid scale-up from 32 GW to 190 GW-evidence of India’s strong clean energy momentum.
India’s Renewable Energy Capacity Growth (2014–2024): Shows rapid scale-up from 32 GW to 190 GW-evidence of India’s strong clean energy momentum.

Recent government data shows India’s non fossil capacity has already crossed 190 GW, constituting 43 pc of total installed capacity — a milestone achieved well ahead of its 2030 target. It also ranks fourth globally in renewable energy capacity, and is one of the few countries on track to meet its Nationally Determined Contributions (NDCs) under the Paris Agreement.

India’s solar potential alone is estimated at 10,830 GW, according to the Ministry of New and Renewable Energy. With electricity demand projected to exceed 5,000 TWh by 2050, clean energy investment in India will be a cornerstone of global decarbonisation efforts.

“India’s climate journey is not just about scaling renewables, but also building climate resilience for millions vulnerable to rising temperatures, floods, and cyclones,” said Aarti Khosla, director of Climate Trends. “Its role at G7 is crucial for shifting the focus from ambition to climate finance implementation.”

Clean energy pacts & critical minerals

India’s clean energy expansion is intrinsically tied to critical minerals such as lithium, cobalt, and rare earths. China currently processes over 85% of the world’s rare earth elements, but the growing global need for secure and transparent mineral supply chains has made India a key player.

Through its National Critical Minerals Mission (NCMM) launched in 2023, India is setting up processing hubs and a National Critical Minerals Stockpile. It aims to produce and process key minerals for its domestic industries and to supply trusted partners like G7 nations. India’s collaboration with countries like Australia, the U.S., and Japan in building mineral resilience directly aligns with the G7’s Five-Point Plan for Critical Minerals Security, announced in 2023.

“India has an opportunity to become a responsible and strategic hub for mineral diplomacy,” said Saloni Sachdeva Michael, energy specialist at IEEFA. “Its frameworks for traceability and circular economy can help set new global standards.”

Energy security & diversification

The global energy crisis, compounded by Russia’s invasion of Ukraine and fragile fossil fuel markets, has made energy diversification a top G7 priority. Natural gas subsidies formed a significant part of the $1.3 trillion in fossil fuel subsidies given by G7 countries in 2023, according to the IEA. Despite committing to phase out subsidies by 2025, G7 countries are now poised to miss that deadline.

India’s participation offers a chance to steer the G7 conversation towards renewable energy investments and away from short term gas expansion. While India is exploring LNG imports from the U.S., experts point to the high costs and urge focus on domestic clean energy solutions.

“With its record solar auctions, declining RE tariffs, and battery storage pilots, India can show the G7 how to scale renewables affordably,” said Purva Jain, energy specialist at IEEFA. “India must also push for progress on methane emission reduction from fossil fuels — something the G7 committed to last year.”

India as a supply chain ally

India’s strategic value extends beyond climate — it plays a key role in diversifying global supply chains. The COVID-19 pandemic and rising U.S.-China trade tensions exposed the risks of over-reliance on China for electronics, pharmaceuticals, and clean energy components. India is responding with its “Make in India, Make for the World” campaign and Production Linked Incentives (PLI) across 14 sectors, including EVs, solar modules, and semiconductors.

According to the Ministry of Commerce, India attracted $83.5 billion in FDI in FY 2023– 24, with major investments from G7 countries such as the U.S., Japan, and Germany. Apple has already shifted 7 pc of its global iPhone production to India, and Tesla is negotiating to set up EV and battery units. India’s digital infrastructure and skilled workforce offer a compelling alternative to China’s manufacturing dominance.

Geopolitical alignment & Indo-Pacific strategy

India’s strategic location in the Indian Ocean and active participation in Quad (India, U.S., Japan, Australia) makes it vital to G7’s IndoPacific goals. India has launched key initiatives like SAGAR (Security and Growth for All in the Region) and Indo-Pacific Oceans Initiative (IPOI) to ensure maritime stability.

India is also central to the India-Middle East-Europe Economic Corridor (IMEC), a proposed network of ports, railways, and highways that rivals China’s Belt and Road Initiative. Supported by the G7 and launched during India’s G20 presidency, IMEC aims to create reliable trade routes connecting Asia, the Middle East, and Europe.

“India brings both strategic depth and infrastructure vision to G7’s Indo-Pacific ambitions,” said Madhura Joshi, Programme Lead at E3G. “It is uniquely positioned to balance great power rivalries while driving inclusive development.”

Championing the Global south

India’s invitation is also significant for its role as a voice of the Global South, particularly in pushing for reforms in global financial architecture. At COP and G20 forums, India has called for the operationalisation of UNFCCC Article 9.1, seeking at least $1.3 trillion annually in climate finance from developed countries starting 2025.

India was instrumental in securing the African Union’s inclusion in the G20, and its advocacy has ensured that voices from vulnerable and developing nations feature in global decision-making. Its message to the G7 is clear: climate finance must be scaled up, rating agencies reformed, and multilateral banks made responsive to the needs of the Global South.

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