India Signs Historic Free Trade Pact with New Zealand
Prime Minister Narendra Modi and New Zealand Prime Minister Christopher Luxon finalized a landmark Free Trade Agreement (FTA) during a high-level telephone conversation today, December 22, 2025. This deal, completed in a record nine months, is designed to significantly boost trade, innovation, and shared investment.The agreement is expected to double bilateral trade over the next five years and secure a massive $20 billion investment in India from New Zealand over the next 15 years.
On the domestic front, a major political controversy has erupted following President Droupadi Murmu’s assent to the “Viksit Bharat G RAM G Bill.” This legislation replaces the long-standing MGNREGA scheme. While the government promotes it as a modern tool for rural employment, the Congress party and the Samyukt Kisan Morcha have labeled it a “bulldozed” law that dismantles the legal entitlement to work. Nationwide protests are already being organized for January 2026.
Diplomatic tensions are rising as India has suspended its visa application services in Chattogram, Bangladesh, citing security threats. This follows the reported killing of student-led uprising leaders in Bangladesh, causing regional instability. External Affairs Minister S. Jaishankar is closely monitoring the situation as anti-India sentiment rises in the neighboring country, a move the former Bangladesh PM Sheikh Hasina described as a manufactured distraction.
In Maharashtra, the political landscape has shifted significantly as the BJP claimed a major victory in the local body elections, emerging as the single-largest party across over 6,800 seats.Simultaneously, a Delhi court has sought responses from Sonia Gandhi and Rahul Gandhi regarding a new Enforcement Directorate plea in the National Herald case.This legal development adds more pressure on the opposition leadership during a busy winter session. Finally, the central government is facing backlash over a second rail fare hike in 2025. Starting December 26, passengers will see an increase in ticket costs for both AC and non-AC coaches. Opposition leaders argue this move is an unfair burden on the common man. Meanwhile, Bihar CM Nitish Kumar met PM Modi in Delhi today to discuss the state’s development goals following their recent election victory, marking a key moment for the NDA coalition’s unity.
