World Trade Organization (WTO) is celebrating 30 years of the Marrakesh Agreement.

• Marrakesh Agreement was signed in Marrakesh, Morocco, by 123 countries in 1994 after the conclusion of the Uruguay Round.
  • It led to the establishment of the WTO in 1995, replacing General Agreement on Tariffs and Trade (GATT) as an international organization.  

About Marrakesh Agreement

• It serves as basic framework for trade relations among all WTO members.
• It expanded the scope beyond trade in goods to trade in services, intellectual property, and other topics.
• It established modern multilateral trading system, facilitating negotiations, dispute settlement, and economic cooperation among members.
• It created WTO’s governance, establishing the Ministerial Conference (highest decision making body), General Council, and specialized councils.

Achievements of WTO

• Lowering trade barriers: Since 1995, real volume of world trade has expanded by 2.7 times and average tariffs have almost halved, from 10.5% to 6.4%.
• Rise of Global Value Chains: Trade within these value chains today accounts for almost 70% of total merchandise trade.
• Growth in developing countries: Fastest poverty reduction since 1995 and increased purchasing power in all countries. 
• International Trade Agreements and Rules: TRIPS Agreement, Nairobi Package, Trade Facilitation Agreement, Doha Development Agenda etc. 

United Nations Conference on Trade and Development (UNCTAD) rebranded as UN Trade and Development.

• The rebranding marks the start of the 60th anniversary of the organization.
  • This strategic move underscores the organization's commitment to increasing its global voice on the behalf of developing countries.

Key Achievements: 

• Implementation of Financing for Development, as mandated by the global community in the Addis Ababa Agenda (2015), together with four other major institutional stakeholders.
  • The institution includes the World Bank, the International Monetary Fund, the World Trade Organization, and the United Nations Development Programme.
• Assisted countries under the Debt Management and Financial Analysis System (DMFAS) Programme.

• The government sought technical assistance from ILO to create a framework for living wage
• Presently, India follows the minimum wage, which has remained stagnant since 2017.
• The Code on Wages passed (2019), proposed a universal wage floor which shall apply to all states once implemented.

• Issues with the present system
  • The Minimum Wages Act, 1948 provides guidelines but does not specify the minimum wage.
  • Fixing minimum wages in some jobs falls under both the Minimum Wages Act, 1948, and the Contract Labour (Regulation and Abolition) Act, 1970, leading to potential confusion.
  • Wage payment discrepancies due to the lack of enforceability of the national wage floor across states.
  • Gender disparity as scheduled employment with more women workers has lower minimum wages than those with more men.
• Advantages of Living Wage
  • Accelerate Poverty alleviation efforts, aligning with Sustainable Development Goals (SDGs). 
  • Addresses wage insufficiency, especially considering inflation, and fosters a more equitable and sustainable economy.
• Challenges of Living Wage
  • Implementing a national living wage framework across states due to the diversity of living costs in different regions of India. 
  • Financial strain especially for small businesses and MSMEs, due to increased labour costs.

• Indian banks are battling the worst deposit crunch in 20 years and at 80%, the credit-deposit ratio is at its highest since 2005. 
• About CDR:
  • It is the ratio of how much a bank lends out of the deposits it has mobilised.
  • A higher CDR suggests that a significant portion of the bank's resources are allocated to loans.
    • It could potentially stimulate economic growth but also implies higher risk.
  • Regulators often monitor CDR to ensure banks maintain a prudent balance between lending and risk management.

• Securities and Exchange Board of India (SEBI) launched SCORES 2.0 version which strengthens investor complaint redress mechanism in securities market by making process more efficient.
• SCORES is an online system where investors in securities market can lodge their complaints through web URL and an App.
• Salient features of SCORES 2.0
  • Reduced timelines for redressal of investor complaints across Securities Market i.e. 21 Calendar days from date of receipt of complaint.
  • Introduction of auto-routing of complaints to concerned regulated entity to eliminate time lapses.
  • Integration with KYC Registration Agency database for easy registration.

• Several states are using SURAKSHA platform for disbursing subsidies to horticulture farmers under the CDP.
  • CDP is a component of the central sector scheme of National Horticulture Board (NHB).
• About CDP-SURAKSHA
  • SURAKSHA stands for ‘System for Unified Resource Allocation, Knowledge, and Secure Horticulture Assistance’.
  • It allows an instant disbursal of subsidies to farmers in their bank account by utilising the e-RUPI voucher from the NPCI. 
  • Its key features are database integration with PM-KISAN, UIDAI validation, geotagging, geo-fencing etc.
  • CDP-SURAKSHA allows access to farmers, vendors, Implementing Agencies, Cluster Development Agencies etc.

• Expert Committee on developing GIFT IFSC as ‘Global Finance and Accounting Hub’ submitted report to IFSCA. 
• Committee was formed following a Ministry of Finance notification.
  • The notification classified book-keeping, accounting, taxation, and financial crime compliance as ‘financial services’ under International Financial Services Centre (IFSC) Act, 2019.
• Gujarat International Finance Tech- City (GIFT City)-IFSC was established as Special Economic Zone (SEZ) in 2015, in Gujarat.
  • An IFSC caters to customers outside the jurisdiction of the domestic economy. Such centres deal with flows of finance, financial products and services across borders.
• Opportunities for GIFT IFSC to become Global Finance and Accounting Hub
  • Strong technology-driven outsourcing capabilities.
  • Large talent pool of skilled manpower in the fields of accounting, etc.
  • “Accounting and finance services” recognised as one of the 12 Champion sectors in services for exports.
• Recommendations 
  • Proposes a new regulation, providing for comprehensive and inclusive definition for Bookkeeping, Accounting, Taxation, and Financial Crime Compliance Services.
    • Only firms that are registered as a company or a Limited liability partnership should be allowed to offer these services.
  • Long-term strategies for education and skill acquisition through developing specialized degree or diploma programs, etc.

IFSC Authority

• IFSC Authority is a statutory body established under IFSC Act,2019.
• A unified regulator for development and regulation of financial products, financial services and financial institutions in IFSCs in India.

• PayU has received an in-principle approval from the Reserve Bank of India (RBI) to operate as a PA.

• About PAs
  • It is a financial technology company that simplifies the process of accepting electronic payments for businesses. E.g., GooglePay, PhonePe, Cashfree etc. 
  • It acts as an intermediary between the business and the financial institutions.
  • It is incorporated as a company under the Companies Act, 1956 / 2013.
  • Non-bank PAs require authorisation from RBI under the Payment and Settlement Systems Act, 2007.

• Interactive Entertainment and Innovation Council (IEIC) and WinZO released India Gaming Report 2024 .
• Key findings:
  • With 568 million users, India is officially the largest gaming market and accounts for every one in five online gamers globally.
  • Indian gaming market is expected to reach $6 Billion by 2028.
  • Number of Indian gaming companies surged from 25 in 2015 to over 1400 in 2023. 
• Factors responsible for boost in gaming industry:
  • Rise of affordable high-speed internet ($0.17/GB) and increase in smartphone penetration (820 million users).
  • Burgeoning share of young population (~600 million) and rising disposable income.
  • Supply side factors include global investments in game development, rewarding gaming career, vernacular language content and gamification of Indian culture etc. 
• Gaming’s contribution to society: Reduction in social isolation, community building, especially for women gamers, and its role in enhancing research, education and skilling.
  • It also improves penetration of emerging technologies like Virtual Reality, Artificial Intelligence among others. 
• Challenges to gaming sector:
  • Sustainability issues from 'internet pollution' (3.7% of Greenhouse Gas emissions).
  • Financial literacy gaps, regulatory complexities, and data security challenges.
  • Gaming can have a detrimental impact on physical and mental health in certain cases. E.g., issues like ‘Blue Whale Challenge’.
• Recommendations: 
  • Utilise green innovations and virtual environments for sustainable gaming.
  • Establish a global gaming cluster with policy support, supporting startups and talent development.
  • Prioritise R&D for online safety and digital literacy.