GS Analyst: Daily Editorial In Brief

The Promotion and Regulation of Online Gaming Bill, 2025 was passed by Parliament, banning online real money games while promoting e-sports and social games, sparking debates on legality, economy, and federalism.

Economic and Employment Impact

• Job Losses: The gaming sector, projected to employ 1.5 lakh skilled professionals by 2025, faces large-scale job disruptions due to the sudden ban.
• Revenue Loss: The ban eliminates around ?17,000 crore in potential GST revenues for both Union and State governments.
• Investment Shock: Sudden policy reversal undermines foreign direct investment confidence, weakening India’s credibility in digital industries.

Regulatory and Constitutional Concerns

• Lack of Consultation: The Bill was passed without debate or consultations with States, despite betting and gambling being State subjects.
• Right to Profession: The prohibition conflicts with Article 19(1)(g), which guarantees the right to practise any profession or business.
• Judicial Grey Zone: Courts have distinguished ‘games of skill’ from ‘games of chance,’ but the blanket ban disregards this constitutional doctrine.

Governance and Alternatives

• Responsible Gaming Tools: Age-gating, deposit limits, KYC checks, and anti-addiction safeguards were already being developed by the industry.
• Risk of Illegal Platforms: Prohibition is likely to push users towards offshore, unregulated apps that evade taxation and expose players to fraud.
• Middle-Ground Approach: A clear licensing regime, strict compliance standards, and predictable taxation could balance innovation with public interest.

Practice Question

The Promotion and Regulation of Online Gaming Bill, 2025 has reignited debates on economic growth, constitutional propriety, and federalism. Critically examine the implications of the ban on online real money games and suggest a balanced regulatory framework for India’s digital economy.   (250 words)

A Foreign Affairs article titled “India’s Great Power Delusions – How New Delhi’s Grand Strategy Thwarts Its Grand Ambitions” has sparked debate on India’s claim to emerging Great Power status and its positioning in global geopolitics.

India’s Strategic Position

• Civilisational Strength: India, like China, is a civilisational power with a unique historical trajectory of economic and social transformation.
• Economic Achievements: From famine-stricken beginnings to the Green Revolution and becoming a foodgrain exporter, India’s economic story shows resilience and structural depth.
• Moral Authority in Global Politics: India pioneered the Non-Aligned Movement, mediated in global conflicts such as the Korean War, and projected soft power beyond military might.

Contradictions in Global Perception

• Western Misreading: Critics fail to appreciate India’s ability to manage contradictions, balancing ties with both the U.S. and Russia despite strategic frictions.
• Evolving Partnerships: India joined the Quad and engages in multilateral forums like SCO, signalling flexible diplomacy rather than rigid bloc politics.
• Strategic Autonomy: Despite pressures, India sustains defence and energy ties with Russia while deepening partnerships with the U.S., reflecting independent foreign policy choices.

Technology and Future Power

• Digital Transformation: Technological innovation and data are becoming the true markers of global power in the 21st century.
• India’s Technological Capacity: With rising digital infrastructure and global tech workforce contributions, India shows potential to challenge Western dominance.
• Shifting Global Order: The West’s technological lead is narrowing, while India, China, and other Asian nations advance towards shaping new digital and economic structures.

Practice Question

Critically analyse India’s claim to emerging Great Power status in light of global criticisms of its strategic positioning. How do economic transformation, strategic autonomy, and technological capacity shape India’s future trajectory in world politics?   (250 words)

The global economy faces rising tariffs, trade diversion, and technological disruptions, posing challenges for emerging markets to sustain growth.

Challenges for Emerging Markets

• Tariff Pressures: The imposition of non-tariff and tariff barriers, such as US tariffs rising to 2.7%, undermines the global efficiency gains of trade.
• Trade Diversion Risks: Ongoing trade wars, particularly US–China tensions, trigger trade diversion that adversely impacts smaller emerging economies.
• Shrinking Export Competitiveness: Surging Chinese overcapacity, alongside new protectionist measures, erodes the competitiveness of countries like India and Indonesia.

Technology and Domestic Pressures

• Technological Transition: Global manufacturing is shifting toward labour-substituting, capital-intensive industries, reducing employment opportunities in emerging economies.
• China’s Expansion: China’s sustained investment across manufacturing and exports heightens competitive stress for developing economies.
• Structural Vulnerabilities: Countries with young populations and weak industrial bases, particularly in South Asia and Sub-Saharan Africa, face difficulty in sustaining jobs and income.

Policy Options for Emerging Economies

• Reform Imperative: Emerging markets must advance next-generation reforms in land, labour, GST, health, and education to sustain growth.
• Beyond Capital-Labour Balance: Success depends on strengthening productivity, skills, and innovation rather than relying only on labour cost advantages.
• Global Orientation: Economies must maintain openness to trade and competition, ensuring resilience against protectionism and external shocks.

Practice Question

“Amid rising global protectionism, technological shifts, and trade disruptions, emerging markets face the risk of stagnation. Critically evaluate the challenges and suggest policy strategies that India must adopt to sustain inclusive growth in this changing global order.”    (250 words)