Current Affairs 30 October 2024

CONTENTS

1. Report Highlights Money Laundering Threats to India’s Online Gaming Sector
2. Finance Ministry Report Indicates Slowdown in Urban Demand for H1 FY25
3. Dyslexia
4. Giant Fertilizer Bomb
5. Sohrai Painting
6. Tardigrades

Report Highlights Money Laundering Threats to India’s Online Gaming Sector

Context:

A report by the Digital India Foundation (DIF) has identified money laundering as a significant threat undermining the integrity and long-term success of the Indian online gaming industry.

Relevance:

GS II: Polity and Governance

Dimensions of the Article:

1. Key Findings from the Report on Money Laundering in Online Gaming
2. Understanding Online Gaming: Regulations and the Code
3. Online Gaming Market in India

Key Findings from the Report on Money Laundering in Online Gaming

Growth and Impact of the Online Gaming Industry in India

• Expansive Growth: The online gaming industry in India has seen a Compound Annual Growth Rate (CAGR) of 28% from FY20 to FY23.
• Projected Revenue: It is projected that the sector’s revenue will reach USD 7.5 billion within the next five years.
• Gamer Population and Job Creation: With 568 million gamers, the industry is poised to create significant employment opportunities, potentially offering 250,000 jobs by 2025 in fields like fintech, cybersecurity, and cloud services.
• Start-Up Ecosystem: The vibrant sector supports over 400 startups and engages 100 million daily gamers.

Mechanisms of Money Laundering in the Sector

• Use of Proxy Technologies: Many platforms use mirror sites and Virtual Private Networks (VPNs) to circumvent restrictions.
• In-game Financial Systems: In-game currencies and assets are frequently exploited for illicit financial activities.
• Cryptocurrency Transactions: The anonymity provided by cryptocurrencies aids in facilitating cross-border money laundering.
• Mule Accounts: These accounts help in masking the origins of illicit funds by facilitating complex transactions.
• Transaction Strategies: Techniques such as smurfing and money dumping involve small transactions to escape detection.

Understanding Online Gaming: Regulations and the Code

• Online gaming refers to playing games over the internet, enabling players to connect and collaborate regardless of physical locations, accessible on various devices such as computers and mobile phones.
• Distinguishing Gambling and Online Gaming: Gambling involves placing bets on uncertain outcomes to win money or possessions, posing a risk of loss. In India, games of skill are distinguished from games of chance, and the Supreme Court considers competitions substantially involving skills as not falling under gambling.

Code Alignment with Government Regulations:

• Public Gambling Act, 1867: While primarily addressing physical gambling, this act extends its relevance to online gaming, providing a legal framework for regulation.
• Information Technology Act, 2000: Sections 66, 67, 67A, and 67B empower authorities to formulate laws regarding online gaming, recognizing the need for discretion in regulating chance-based activities. This aligns with the constitutional division, placing gambling under state jurisdiction.
• Self-Regulatory Bodies: The Ministry of Electronics and Information Technology permits the establishment of self-regulatory bodies within the online gaming industry, emphasizing industry self-governance.
• Inter-Ministerial Task Force Recommendations: Proactively addressing the sector, the government’s recommendations from the inter-ministerial task force contribute to formulating rules for online gaming, emphasizing a balanced approach between industry growth and consumer protection.

Online Gaming Market in India

Types of Online Gaming:

• e-Sports: Professional players compete online individually or in teams in structured tournaments.
• Fantasy Sports: Players create teams of real sports players and earn points based on their real-life performance.
• Online Casual Games: These include both skill-based games and chance-based games. Skill-based games rely on mental or physical skills, while chance-based games involve random elements, such as rolling dice. Games involving betting of money or valuables can be considered gambling.

Market Size:

• Growth Rate: Between 2017 and 2020, the Indian online gaming industry experienced a high compound annual growth rate (CAGR) of 38%. In comparison, China had a growth rate of 8% and the US had a growth rate of 10%.
• Revenue Projections: The Indian mobile gaming industry’s revenue is expected to surpass $1.5 billion in 2022 and is estimated to reach $5 billion by 2025.
• Increasing Paying Players: According to a FICCI report, the revenue from transaction-based games increased by 26% in India. The number of paying players also rose from 80 million in 2020 to 95 million in 2021, representing a 17% increase.

Issues:

• Regulatory Oversight: The online gaming industry lacks consistent regulatory oversight, leading to challenges in creating a standardized framework.
• State Subject: Online gaming falls under the jurisdiction of individual states, resulting in regulatory inconsistencies across different regions of the country.
• Societal Concerns: There are concerns about the impact of online gaming, particularly related to addiction and the potential for financial losses leading to severe consequences like suicides.

-Source: The Hindu

Finance Ministry Report Indicates Slowdown in Urban Demand for H1 FY25

Context:

The latest monthly economic review from the Finance Ministry reveals a slowdown in urban demand, as evidenced by several economic indicators during the first half of FY25. The report outlines key factors influencing India’s changing economic landscape, pinpointing both challenges and potential areas for growth.

Relevance:

GS III: Indian Economy

Dimensions of the Article:

1. Overview of the Indian Economy’s Current Performance
2. Policy Initiatives and Economic Forecast for India
3. Conclusion

Overview of the Indian Economy’s Current Performance

Economic Growth Dynamics:

• Mixed Growth Trends: India is experiencing economic growth with a distinct urban-rural divide. Urban areas face a slowdown due to various economic pressures, while rural regions exhibit resilience with increased consumption.
• Rural-Urban Disparity: Urban centers are grappling with softening demand for consumer goods due to factors like high food inflation, whereas rural areas show robust consumption increases.

Urban Economic Challenges:

• Consumer Demand Softening:
  • Established FMCG companies such as Tata Consumer Products and Nestle India report a downturn in urban demand driven by rising food costs.
  • Automobile sectors also witness a slowdown, influenced by seasonal monsoons and restrictions during the election period.

Key Economic Indicators:

• GDP Growth: India’s GDP growth has slowed to 6.7% in Q1 FY25 with an expectation of a further decrease in Q2, impacted by reduced urban investment and consumption.
• Corporate Earnings: There’s been a notable slowdown in the profit growth of listed companies, with the slowest growth recorded in the last 16 quarters, as per Crisil.
• Wage Trends and Spending: Urban wage growth has decelerated, impacting consumer spending power significantly.

Inflation and Monetary Policy:

• Inflation Concerns: Persistent food inflation has prompted the Reserve Bank of India to maintain a cautious stance on interest rate adjustments.
• RBI’s Strategy: The RBI Governor has highlighted the need for a flexible approach to inflation, avoiding hasty policy relaxations.

Resilience in Rural Demand:

• Consumer Goods and Automobile Sales:
  • FMCG and automobile sales in rural areas show positive trends, with increases in items like tractors and three-wheelers indicating upward momentum.
  • Nielsen IQ data reflects a 5.2% rise in rural FMCG sales in Q1 FY25, an improvement from the previous year.
• Agricultural Prosperity: Favorable monsoon conditions have bolstered real wage growth for agricultural and non-agricultural workers in rural areas, supporting stronger consumer spending.

Policy Initiatives and Economic Forecast for India

Government and Reserve Bank of India Actions:

• Government Spending Strategies:
  • Post-election, an increase in government spending is expected to bolster economic stability, focusing on robust capital expenditure from September to March.
  • The central government’s expenditure in the initial five months of FY25 amounted to Rs 16.52 lakh crore, a slight decrease from the previous year, suggesting potential for increased fiscal activity.
• RBI’s Monetary Approach:
  • The Reserve Bank of India maintains a vigilant stance on inflation, opting for a cautious approach before making rate adjustments.
  • The RBI aims to nurture economic growth while simultaneously managing inflation through prudent policy decisions.

Influences of Festive Season and International Factors:

• Boost from Festive Demand:
  • The upcoming festive period is expected to revive consumer spending with various discounts, potentially mitigating the effects of urban demand slowdown.
• Global Economic Interactions:
  • Possible easing of monetary policies by the US Federal Reserve could lead to enhanced capital inflows to India, bolstering investments and supporting broader economic growth in subsequent quarters.

Conclusion:

• Balanced Growth Prospects:
  • Despite the challenges in urban markets, rural areas’ resilience coupled with strategic government expenditures are poised to support India’s economic stability.
• Inflation and Global Concerns:
  • Persistent high inflation and international economic uncertainties are significant challenges; however, responsive fiscal strategies and adaptive monetary policies by the RBI are crucial for a sustainable economic recovery.
• Adaptive Economic Strategies:
  • India’s economic trajectory in the near future will depend on ongoing adjustments based on real-time data to sustain growth and address both domestic and global economic shifts.

-Source: The Hindu

Dyslexia

Context:

Recently, as part of the nation-wide ‘Act4Dyslexia’ campaign, key monuments in Delhi, including Rashtrapati Bhawan, Parliament House, North and South Blocks, and India Gate, have been illuminated in red, the colour for Dyslexia Awareness.

Relevance:

GS II: Health

Dyslexia: An Overview

Nature and Challenges of Dyslexia:

• Definition and Characteristics:
  • Dyslexia is a learning disorder characterized by difficulties with reading, particularly with phonemic awareness—the ability to discern and manipulate sounds in spoken words. This issue stems from differences in the brain’s language processing regions.
• Common Misconceptions:
  • Despite common beliefs, dyslexia is not linked to intelligence, hearing, or vision impairments, nor does it reflect a person’s overall learning capacity. It is often mistakenly referred to as the “slow-learner syndrome.”

Causes and Inheritance:

• Genetic Factors:
  • Dyslexia tends to run in families, suggesting a strong genetic component. The likelihood of inheriting dyslexia can be as high as 30% to 50% if a parent also has the condition.
• Brain Structure and Function:
  • Research indicates notable differences in the brain structure and functionality of individuals with dyslexia, affecting how they process language.
• Developmental Disruptions:
  • Factors such as prenatal infections or exposure to toxins may interfere with normal brain development, potentially contributing to the onset of dyslexia.

Legal and Educational Framework:

• Legislative Recognition:
  • Dyslexia is recognized under the Rights of Persons with Disabilities Act of 2016 in India, which provides protections and equal opportunities in education and employment.
• Educational Policies:
  • The National Education Policy (NEP) 2020 of India supports the rights of dyslexic individuals by promoting inclusive educational practices. This policy includes measures for early detection, enhancing teacher training, and equipping schools with the necessary resources to support students with dyslexia.

-Source: Indian Express

Giant Fertilizer Bomb

Context:

A recent study published in the “Proceedings of the National Academy of Sciences” proposes that a meteorite impact 3.26 billion years ago may have acted as a giant fertilizer bomb, significantly boosting the development of early life on Earth.

Relevance:

Facts for Prelims

Key Points

Nutrient Enhancement from Meteorite Impact:

• Source of Essential Nutrients:
  • Research from the Barberton Greenstone Belt indicates that a carbonaceous chondrite meteorite impact delivered vital nutrients such as phosphorus and iron. These elements were crucial for the resurgence and proliferation of microbial life and archaea after the impact.

Devastating Impact and Subsequent Recovery:

• Impact and Environmental Consequences:
  • The meteorite, vastly larger than the asteroid responsible for the extinction of dinosaurs, measuring between 23-36 miles in diameter, caused significant environmental upheavals. This included a massive vapor cloud and a large-scale tsunami, leading to extended periods of darkness and elevated temperatures.
• Resilience and Adaptation of Early Life:
  • Contrary to the belief that meteorite impacts are purely destructive, the study reveals that the post-impact environment, enriched with essential nutrients, facilitated a rapid recovery and flourishing of early microbial life.

-Source: The Hindu

Sohrai Painting

Context:

The Prime Minister of India gifted Sohrai painting to the Russian President during the recently held BRICS summit in Kazan.

Relevance:

GS I: History

Sohrai Painting: An Indigenous Artistic Heritage

Origins and Cultural Significance:

• Historical Roots:
  • Sohrai painting is a traditional mural art form with origins tracing back to the Meso-chalcolithic period (9000-5000 BC).
• Etymology:
  • The term ‘Sohrai’ is derived from the local word ‘soro,’ meaning ‘to drive with a stick,’ reflecting the art form’s deep-rooted cultural significance.
• Archaeological Evidence:
  • Similarities have been noted between ancient rock paintings found in the Isko rock shelter in Barkagaon, Hazaribagh, and contemporary Sohrai murals.

Themes and Techniques:

• Nature-Inspired Themes:
  • Sohrai paintings predominantly feature natural elements such as forests, rivers, and animals, reflecting the tribal communities’ deep connection with nature.
• Traditional Methods:
  • Crafted by tribal women using natural pigments from charcoal, clay, and soil, these paintings are a testament to the sustainable practices embedded in tribal cultures.
• Tribal Heritage:
  • The art form is primarily maintained by women from several indigenous communities including the Kurmi, Santal, Munda, Oraon, Agaria, and Ghatwal tribes across regions like Jharkhand, Bihar, Odisha, and West Bengal.

Modern Recognition and Celebrations:

• Geographical Indication (GI) Status:
  • Sohrai painting has been recognized with a GI tag, highlighting its uniqueness and originating from the Hazaribagh area of Jharkhand.
• Festive Association:
  • The art form is celebrated during the Sohrai festival, which coincides with the harvest season and the onset of winter, showcasing the art’s integral role in local festivities.

-Source: The Hindu

Tardigrades

Context:

A team of researchers has identified the genetic mechanisms that help a newly discovered species of tardigrades (Hypsibius henanensis) withstand high levels of radiation.

Relevance:

Facts for Prelims

Overview of Tardigrades

Tardigrades, commonly known as water bears or moss piglets, are minuscule, eight-legged creatures that belong to the Tardigrada phylum. Globally, there are approximately 1,300 identified species of tardigrades. They are renowned for their ability to thrive in extreme environments and are considered extremophiles.

Habitat and Lifestyle:

• Tardigrades are primarily aquatic, necessitating a thin moisture layer around them to avoid dehydration. However, their remarkable adaptability allows them to inhabit diverse environments, from ocean depths to sandy deserts.
• Their typical habitats include freshwater mosses and lichens, which explains their alternative name, moss piglet.

Survival Capabilities:

• Tardigrades exhibit extraordinary resilience across extreme conditions, including intense heat, freezing temperatures, exposure to ultraviolet radiation, and even the vacuum of space.
• In adverse environments, they can enter a tun state, a form of suspended animation where their bodies dehydrate and curl into a dormant, seed-like form, allowing them to endure for extended periods, sometimes spanning years or decades.

Physical Characteristics:

• These creatures are compact and stout, covered with a tough cuticle similar to that seen in grasshoppers and other insects, which they must periodically molt to grow.
• Typically measuring around 1 mm or less, tardigrades possess no skeletal structure but are supported internally by a hydrostatic skeleton, which is essentially a fluid-filled compartment known as a hemolymph.
• They feature four pairs of legs, each ending in 4 to 6 claws, adept for navigating their microenvironments.

-Source: Indian Express