UPSC Mains Current Affairs for 15 July 2025

Indians Lose ₹1,000 Crore Monthly to Southeast Asia Cyber Frauds: Key Scam Types Explained

July 15, 2025

Southeast Asia Cyber Scams India Latest News

The Ministry of Home Affairs (MHA) estimates that over half of the ₹7,000 crore lost to cyber scams in India from January to May 2025 originated from Southeast Asia.
Countries like Myanmar, Cambodia, Vietnam, Laos, and Thailand are key sources, with scams often operated from high-security centres controlled by Chinese networks.
These centres reportedly use trafficked individuals, including Indians, as forced labour in running these fraud operations, according to the Indian Cyber Crime Coordination Centre (I4C).

Stock Trading and Investment Scams

These scams promise high returns on stock market investments, cryptocurrency, or other financial products.
Victims are contacted through social media, WhatsApp, or fake investment apps.
Scammers pose as financial advisors or representatives from trading firms. They convince people to deposit money in fake accounts or platforms showing fake profits.
Once a large amount is invested, the scammer disappears.

Digital Arrest Scams

In these scams, people are tricked into believing they are under investigation by government agencies like the CBI, Income Tax Department, or Police.
Victims receive fake calls or video calls where scammers, often wearing uniforms, say the person’s identity or bank account is linked to crimes like money laundering or drugs.
They are threatened with arrest unless they pay a fine or security deposit immediately.

Task-Based and Investment-Based Scams

These scams involve fake job offers or freelance work, where the victim is asked to complete small tasks and gets paid at first, building trust.
The scam starts with simple tasks like liking YouTube videos or rating apps. Victims are paid small amounts at first.
Later, they are asked to invest money to get larger commissions. Once a big investment is made, the scammer vanishes.

Southeast Asia-Based Cyber Scams

MHA has estimated that over half of ₹7,000 crore lost to cyber scams from January to May 2025 originated from networks based in Myanmar, Cambodia, Vietnam, Laos, and Thailand.
India faces an average monthly loss of ₹1,000 crore due to such scams, according to the I4C.
Chinese-Controlled Scam Centres and Trafficked Workers
- The scams are reportedly operated from high-security compounds controlled by Chinese operators, where trafficked individuals, including over 5,000 Indians, are forced to work.
- People from Africa, East and Southeast Asia, Central Asia, West Asia, Europe, and the Americas have also been identified in these centres.
Scam Hotspots
- Through intelligence inputs and survivor testimonies, the Indian government has identified at least:
  - 45 scam centres in Cambodia
  - 5 in Laos
  - 1 in Myanmar
Major Types of Cyber Frauds Identified
- Investigations revealed three primary scam categories:
  - Stock trading and investment scams
  - Digital arrest scams
  - Task-based and investment-based scams
Agents Recruiting Indians for Cyber Scam Work
- The Indian government has tracked down several agents hiring Indians for these operations.
- These agents are from Maharashtra; Tamil Nadu; Jammu & Kashmir; Uttar Pradesh; Delhi.
Human Trafficking Routes Traced
- Rescued victims revealed various international travel routes used to traffic Indians to scam centres, including:
  - Dubai → China → Cambodia
  - Tamil Nadu → Cambodia
  - Maharashtra → Thailand → Cambodia
  - Delhi → Bangkok → Cambodia
  - Kerala → Singapore/Vietnam → Cambodia
  - Kolkata → Vietnam → Cambodia (by road)
Government Response
- The Centre formed an inter-ministerial panel, identifying loopholes in banking, immigration, and telecom systems.
- The CBI has registered FIRs against PoS agents for issuing ghost SIM cards linked to these scams.

Source: IE

Southeast Asia Cyber Scams India FAQs

Q1: How much does India lose monthly to Southeast Asia cyber scams?

Ans: Around ₹1,000 crore per month, according to the Ministry of Home Affairs and I4C data.

Q2: What are stock trading and investment scams?

Ans: Fake investment platforms promise high returns, tricking victims into depositing large sums before disappearing.

Q3: How do digital arrest scams work?

Ans: Victims are threatened with fake police or agency calls demanding payment to avoid arrest for fake crimes.

Q4: What are task-based and investment-based scams?

Ans: Scammers offer small online jobs, pay initially, then ask for large investments which they disappear with later.

Q5: How is the Indian government responding to these scams?

Ans: By tracking scam centres, arresting agents, investigating banking loopholes, and cooperating with Southeast Asian governments.

India’s Revised SO₂ Emission Norms: Why the Government Eased Rules for Power Plants

July 15, 2025

Revised SO₂ Emission Norms India Latest News

The Union Environment Ministry has defended its recent order revising SO₂ emission norms for thermal power plants.
It clarified that exempting many coal- and lignite-based plants from mandatory flue gas desulphurization retrofits was based on evidence, emission trends, and sustainability needs.
The ministry stated there was no significant difference in ambient SO₂ levels between cities with or without such technology, countering claims of regulatory dilution.

Sulphur dioxide: A Significant Air Pollutant

Sulphur dioxide (SO₂) is a major air pollutant primarily released from coal-fired power plants and other fossil fuel combustion.
It poses serious health and environmental risks. As a respiratory irritant, SO₂ can trigger asthma, bronchitis, and other lung diseases.
It is also a precursor to PM2.5, fine particulate matter linked to heart attacks, strokes, and premature death.
Beyond human health, SO₂ contributes to acid rain, harming soil quality, aquatic ecosystems, and plant life.
Its combined direct and indirect effects make SO₂ control vital for public health, environmental protection, and climate resilience.

India and Sulphur Dioxide Emission

India is the world's largest emitter of sulfur dioxide (SO2), primarily due to its heavy reliance on coal for power generation.
- In 2022, India was the world’s largest emitter of sulphur dioxide (SO₂), contributing over 20% of global anthropogenic emissions due to its coal-heavy power sector.
- India topped SO₂ emissions from electricity generation at 6,807 kilotonnes, far ahead of countries like Turkey, Indonesia, South Africa, and Saudi Arabia.
While SO2 levels have shown a declining trend, they remain high in certain regions like the Indo-Gangetic Plain, central and eastern India.

The Revised SO₂ Norms

The Union Environment Ministry has defended its order revising sulphur dioxide (SO₂) emission norms for thermal power plants, countering claims of regulatory dilution.
The ministry cited research from IIT Delhi, NEERI, and others, noting no major public health concern from current ambient SO₂ levels and highlighting that sulfate aerosols from SO₂ contribute minimally to PM2.5 pollution.
FGD systems, which cut sulphur dioxide (SO₂) emissions from coal plants, were made mandatory in 2015.
Yet, only 8% of India’s 180 coal plants have installed them so far, with delays attributed to high costs and limited availability.

Rationale Behind the Policy Shift

According to the Ministry, India’s ambient SO₂ levels have been declining, with 2023 measurements across 492 cities showing compliance in all but two.
Indian coal naturally has low sulphur content, leading to relatively lower SO₂ emissions.
Studies have found no major difference in SO₂ concentrations between cities with and without FGD-fitted plants.
The Ministry noted that eliminating all SO₂ emissions would only marginally improve particulate matter (PM2.5) levels, while retrofitting all plants would cost around ₹2.54 lakh crore — a disproportionately high investment for limited environmental benefit.

Key Highlights of the Revised SO₂ Norms

Category A Plants (11% of Total Units): Located within 10 km of Delhi-NCR or cities with over 1 million population. Must comply with SO₂ norms by end-2027.
Category B Plants (11% of Total Units): Located within 10 km of critically polluted areas or non-compliant cities. Norms apply case-by-case based on expert committee recommendations.
Category C Plants (78% of Total Units): Located outside A and B zones. Fully exempted from SO₂ norms but must meet stack height criteria.
Plants Retiring Before 2030: Exempt from SO₂ norms if they submit an undertaking. Those operating beyond 2030 must pay ₹0.40 per unit as compensation.
Scientific Basis: Revision backed by studies from IIT Delhi, NEERI, and CPCB, showing no significant difference in SO₂ levels between areas with and without FGD retrofits.
Cost Consideration: Estimated ₹2.54 lakh crore required for FGD retrofitting across India, prompting focus on high-impact areas only.

Global Standards Context

The Ministry also highlighted that India’s annual SO₂ standard (50 micrograms/cubic metre) is stricter than those of countries like Japan and Australia.
Given these factors, the revised norms aim to balance public health priorities with economic and operational realities, focusing regulatory efforts where they are most needed.

Source: TH | IE | CERA

Revised SO₂ Emission Norms India FAQs

Q1: What are India’s revised SO₂ emission norms?

Ans: Thermal plants now have tiered compliance rules, with most rural plants exempted from installing flue gas desulphurization systems.

Q2: Why did India ease SO₂ norms for power plants?

Ans: Due to declining SO₂ levels, high retrofitting costs, and scientific studies showing minimal public health impact.

Q3: Which thermal plants must still install FGD systems?

Ans: Only plants near Delhi-NCR and large cities must comply by December 2027 as per Category A rules.

Q4: How much would nationwide FGD retrofitting cost India?

Ans: An estimated ₹2.54 lakh crore, deemed disproportionate for the limited environmental benefit it would offer.

Q5: Is India’s SO₂ emission standard globally competitive?

Ans: Yes, India’s limit (50 micrograms/m³) is stricter than Japan and Australia’s standards according to the Ministry.

Corporate Investment Slowdown – Causes and Consequences

July 15, 2025

Corporate Investment Slowdown Latest News

Despite policy efforts, India is witnessing a prolonged slowdown in corporate investment, with recent data showing industrial growth at a nine-month low and private sector capital formation remaining sluggish.

Persistent Investment Slump

India’s industrial recovery remains tepid, with corporate investment failing to pick up momentum post-pandemic.
The Index of Industrial Production (IIP) recently registered a nine-month low growth of just 1.2%. This slowdown persists despite the government’s multi-pronged efforts, corporate tax cuts, increased capital expenditure (capex), and accommodative monetary policy.
Yet, these measures have not translated into significant investment on the ground. The reason lies not in insufficient profits or financing options, but in a fundamental mismatch between investment incentives and aggregate demand in the economy.

The Demand-Investment Nexus

Investment, by nature, is driven by the demand for goods and services. When demand falters, producers hesitate to expand capacity.
The Indian corporate sector, despite experiencing strong profits, remains hesitant to invest due to weak consumer demand.
The 2024-25 Economic Survey noted that while corporate balance sheets are strong, hiring and wage growth have not kept pace, resulting in subdued consumption.
Between FY20 and FY23, private sector gross fixed capital formation (GFCF) in machinery, equipment, and intellectual property grew by only 35%, a modest figure given India’s ambitious manufacturing targets.

Theoretical Perspectives on Investment Decisions

The debate between economists provides useful insights into investment behaviour.
While one school of thought argued that investment can drive profits independently of consumption, another contended that investment is ultimately constrained by demand.
Under capitalism, individual firms make investment decisions based on their assessment of market conditions.
In a slow-growth environment, firms are unlikely to invest unless they anticipate demand recovery. Thus, investment becomes reactive rather than proactive, a key reason for the current stagnation.

Limits of Government-Induced Investment

The Indian government’s strategy has been to stimulate private investment through tax cuts and public infrastructure spending. The assumption is that improved infrastructure will “crowd in” private investment by reducing operational costs and improving market access. However, this approach faces multiple limitations:
Time Lags: Infrastructure projects have long gestation periods, delaying any investment stimulus.
Import Leakage: Some capex spending leaks into imports, offering limited domestic demand stimulus.
Low Labour Intensity: Many infrastructure projects are capital-intensive and generate limited employment, hence reducing their consumption-boosting potential.
Even the Reserve Bank of India’s interest rate cuts and liquidity measures have not significantly influenced private investment. As Keynes argued, recovery depends on both investor confidence and financial conditions; reducing interest rates alone is insufficient when demand remains weak.

The Path to Recovery: Demand-Led Revival

Reviving corporate investment in India requires an external stimulus, either robust government spending or export-led growth.
However, with global demand facing headwinds due to geopolitical tensions and trade wars, the domestic route appears more viable.
Boosting consumption through increased government expenditure, targeted income support, and employment generation could kickstart the demand-investment cycle.
This would give businesses the confidence to expand capacity, hire more, and invest in long-term growth.

Conclusion

India’s corporate investment slowdown cannot be reversed through tax cuts or interest rate adjustments alone.
The fundamental issue is weak demand, which deters firms from investing even when profits are high and credit is cheap.
A sustained revival will require bold fiscal measures to stimulate demand, alongside long-term structural reforms that address supply chain inefficiencies and ease of doing business.
Recognising the interdependence of demand, profits, and investment is crucial to designing effective policy responses. Without a demand-led push, India’s manufacturing ambitions and job creation goals may continue to face delays.

Source : TH

Corporate Investment FAQs

Q1: Why is corporate investment slowing down in India?

Ans: The slowdown is largely due to weak demand, which discourages businesses from expanding capacity.

Q2: What steps has the Indian government taken to boost investment?

Ans: The government has cut corporate tax rates, increased capital expenditure, and encouraged lower interest rates.

Q3: Why have these measures not worked as expected?

Ans: Low demand, import leakage, and capital-intensive projects have limited the impact of these measures.

Q4: How does demand affect investment decisions in a capitalist economy?

Ans: Investment is primarily driven by demand for products; without demand, businesses hesitate to invest.

Q5: What is needed to revive corporate investment in India?

Ans: A demand-led revival through higher government spending and employment generation is essential.