Daily Insights December 24, 2025

Daily Insights December 24, 2025

1. Conclusion of India–New Zealand Free Trade Agreement (FTA)

• Context: India and New Zealand have successfully concluded negotiations for a comprehensive Free Trade Agreement (FTA) within a record time of nine months.

• About:

  • Agreement Name: India–New Zealand Free Trade Agreement.

  • Concluded Date: Announced by PIB on December 23, 2025.

  • Nodal Ministry: Ministry of Commerce and Industry.

  • Focus Areas: Trade in goods, services, investment, and mobility of professionals.

• Key Points:

  • Tariffs will be eliminated on 95% of New Zealand’s exports to India.

  • India gains duty-free access for 100% of its export tariff lines to New Zealand.

  • Key Indian sectors benefiting include textiles, leather, pharmaceuticals, and engineering goods.

  • The agreement aims to double bilateral trade within the next five years.

  • New Zealand has committed to facilitating USD 20 billion in investment into India over 15 years.

  • Services Trade: New Zealand offers access to 118 service sectors, its most ambitious offer in any FTA.

  • Includes a dedicated Annex on AYUSH and Traditional Medicine, a first for New Zealand.

  • Mobility: A major win for India with a commitment to allow 5,000 Indian professionals (nurses, IT, etc.) to work in New Zealand on 3-year visas.

  • Uncapped entry for Indian students in higher education with post-study work rights.

  • Sensitive Sectors Protected: India has successfully excluded dairy, sugar, and key agricultural items to protect domestic farmers.

  • Includes regulatory cooperation on pharmaceuticals to speed up approvals for Indian medicines.

  • Geographical Indications (GI): New Zealand will amend laws to protect Indian GIs like Basmati rice.

• Source: Press Information Bureau

2. India Pledges $450 Million Aid for Sri Lanka

• Context: India announced a massive reconstruction package for Sri Lanka to help it recover from the devastation caused by Cyclone Ditwah.

• About:

  • Announcement By: External Affairs Minister S. Jaishankar in Colombo.

  • Total Amount: USD 450 million (approx. ₹3,700 crore).

  • Components: Grant and Concessional Lines of Credit (LoC).

  • Trigger: Cyclone Ditwah which caused over 600 deaths in Nov 2025.

• Key Points:

  • The package includes $100 million as a pure grant and $350 million as a concessional Line of Credit.

  • This is part of India’s “Neighborhood First” policy and humanitarian role as a first responder.

  • Funds target the reconstruction of housing, roads, and power infrastructure damaged by the cyclone.

  • EAM S. Jaishankar visited Colombo as a special envoy of the Prime Minister.

  • Sri Lankan President Anura Kumara Dissanayake termed it a “new chapter” in bilateral relations.

  • India had previously deployed military assets for immediate rescue operations during the cyclone (Operation Sagar Bandhu).

  • The aid is separate from the $4 billion economic assistance provided during Sri Lanka’s 2022 financial crisis.

  • Discussions also touched upon the Northern Sea Route and grid connectivity projects.

  • Emphasis was placed on the speedy implementation of Indian community housing projects.

  • The package reinforces India’s strategic presence in the Indian Ocean Region (IOR) against growing Chinese influence.

  • Aid distribution will be monitored by a joint task force to ensure transparency.

  • The grant component specifically focuses on restoring livelihoods of fishermen and farmers.

• Source: The Hindu

3. National Counter Terrorism Policy and Strategy

• Context: The Union Government is finalizing India’s first comprehensive National Counter Terrorism Policy to standardize anti-terror responses across states.

• About:

  • Status: In final drafting stage, to be released soon.

  • Nodal Agency: Ministry of Home Affairs (MHA) and National Investigation Agency (NIA).

  • Key Meeting: Upcoming Anti-Terror Conference on Dec 26-27 will discuss the draft.

• Key Points:

  • The policy aims to provide a uniform template for all states to combat terrorism.

  • It defines the hierarchy of response during terror attacks (who responds first, role of central forces).

  • Digital Radicalization is identified as a primary emerging threat.

  • Addresses the misuse of open borders (specifically Nepal) for infiltration and logistics.

  • Focuses on dismantling Foreign Funded Conversion Networks linked to radicalization.

  • Integrates the use of NATGRID (National Intelligence Grid) for real-time database access by state police.

  • Proposes standard operating procedures (SOPs) for recovery of electronic evidence in terror cases.

  • Emphasizes the “Whole of Government” approach, involving intelligence, military, and civilian agencies.

  • Will likely include specific provisions for dealing with “Lone Wolf” attacks.

  • Seeks to address Aadhaar spoofing and identity fraud used by terrorists.

  • Mandates regular joint training exercises between State ATS (Anti-Terror Squads) and NSG.

  • Establishes legal frameworks for international cooperation in tracking terror financing.

• Source: The Hindu

4. RBI Liquidity Infusion and Forex Swap

• Context: The Reserve Bank of India (RBI) announced significant measures to inject liquidity into the banking system to address the deficit and support the Rupee.

• About:

  • Institution: Reserve Bank of India.

  • Instruments: Open Market Operations (OMO) and USD/INR Swap Auction.

  • Timeline: Auctions scheduled for late December 2025 and January 2026.

• Key Points:

  • RBI will conduct Open Market Operation (OMO) purchases of Government Securities (G-Secs) worth ₹2 lakh crore.

  • The OMOs will be conducted in four tranches of ₹50,000 crore each.

  • Objective: To inject durable liquidity into the banking system which has turned into a deficit mode.

  • RBI also announced a USD/INR Buy/Sell Swap auction of $10 billion.

  • Swap Mechanism: Banks sell US Dollars to RBI and get Indian Rupees, increasing rupee liquidity in the system.

  • The swap has a tenor of 3 years, maturing in 2029.

  • This measure helps manage the Rupee’s depreciation by boosting forex reserves temporarily.

  • Liquidity deficit was caused by advance tax outflows and GST payments in December.

  • The move prevents short-term interest rates (like call money rates) from spiking above the repo rate.

  • It signals RBI’s accommodation stance despite inflationary pressures.

  • The injection is one of the largest in recent years, indicating high demand for credit.

  • Market yields on government bonds are expected to soften (decrease) due to OMO purchases.

• Source: Vision IAS / Upstox News

5. Base Revision of GDP, CPI, and IIP

• Context: The Ministry of Statistics and Programme Implementation (MoSPI) held a workshop to finalize the base year revision for key economic indicators.

• About:

  • Ministry: MoSPI.

  • Indicators: Gross Domestic Product (GDP), Consumer Price Index (CPI), Index of Industrial Production (IIP).

  • New Base Years: 2022-23 (for GDP/IIP) and 2024 (for CPI).

• Key Points:

  • GDP Base Year Revision: Will shift from 2011-12 to 2022-23.

  • CPI Base Year Revision: Will shift from 2012 to 2024.

  • IIP Base Year Revision: Will shift from 2011-12 to 2022-23.

  • Release Dates: New CPI series in Feb 2026; GDP in Feb 2026; IIP in May 2026.

  • Objective: To better reflect the changing economic structure and consumption patterns.

  • CPI Changes: Will likely reduce the weightage of food items (currently 46%) to reflect higher spending on services.

  • GDP Changes: Will incorporate new sectors like the digital economy, gig economy, and green energy.

  • IIP Changes: Will update the item basket to include new manufactured goods (e.g., smartphones, EVs).

  • Consultations involve the RBI, IMF, and state governments to ensure data robustness.

  • The revision will likely change the growth rate figures and inflation readings.

  • Digital data sources (e.g., GSTN data) are being integrated for better accuracy.

  • An Advisory Committee on National Accounts Statistics (ACNAS) is overseeing the technical aspects.

• Source: PIB / KNN India

6. Critical Minerals and National Security

• Context: Air Marshal Ashutosh Dixit emphasized the link between critical mineral supply chains and India’s sovereignty at a defence discussion.

• About:

  • Event: Discussion on “Minerals that Matter: Geopolitics, Sovereignty and Value Chains”.

  • Speaker: Chief of Integrated Defence Staff.

  • Focus: Defence manufacturing and strategic autonomy.

• Key Points:

  • Critical minerals are defined as the “new oil” for the 21st-century defense ecosystem.

  • Essential for manufacturing jet engines, missiles, radar systems, and satellites.

  • Vulnerability: Global supply chains are highly concentrated (dominated by China) and subject to geopolitical coercion.

  • Self-Reliance: Atmanirbhar Bharat in defence is impossible without secure mineral access.

  • Highlighted the National Critical Mineral Mission launched to secure these resources.

  • Need for “Friend-shoring”: Sourcing minerals from politically aligned and stable nations.

  • Specific minerals mentioned include Lithium, Cobalt, Rare Earth Elements (REEs), and Titanium.

  • Calls for increasing domestic exploration and recycling capabilities.

  • The military must be involved in strategic planning for resource security.

  • Semiconductors and batteries are the choke points of modern warfare.

  • India is actively seeking assets in Africa and South America (e.g., KABIL joint venture).

  • The defense sector is the largest consumer of high-grade critical materials.

• Source: The Hindu

7. Surge in Intellectual Property (IP) Filings

• Context: India reported a record surge in Intellectual Property filings, marking a significant rise in domestic innovation.

• About:

  • Data Source: Annual Report of the Office of the Controller General of Patents, Designs, and Trade Marks (CGPDTM).

  • Trend: 44% increase over the last 5 years.

  • Ministry: Ministry of Commerce and Industry.

• Key Points:

  • Total IP filings reached a record 6.90 lakhs in the latest fiscal year.

  • Patents: Witnessed a 180% increase in filings.

  • Geographical Indications (GI): Saw the highest growth rate of 380%.

  • Designs: Filings increased by 266%.

  • Domestic vs Foreign: For the first time, domestic patent filings outnumbered foreign filings.

  • Trademarks: Continued to form the largest chunk of filings.

  • Attributed to the National IPR Policy 2016 and measures like fee reductions for startups/MSMEs.

  • Digitalization: 100% online filing and AI-based examination have reduced pendency.

  • SIPP Scheme: Start-ups Intellectual Property Protection scheme provided free legal facilitation.

  • Global Innovation Index (GII): India’s rank improved significantly due to IP outputs.

  • Awareness: NIPAM (National IP Awareness Mission) trained over 1 million students.

  • Commercialization: Focus shifting from mere filing to monetizing IP assets.

• Source: PIB / Next IAS

8. Institutional Deliveries Rise to 89%

• Context: Union Health Minister J.P. Nadda released new health data showing a massive improvement in maternal healthcare indicators.

• About:

  • Speaker: J.P. Nadda (Health Minister).

  • Key Metric: Institutional Delivery Rate.

  • Location of Address: Foundation stone laying in MP (Dhar and Betul).

• Key Points:

  • Institutional Deliveries: Rose to 89% (up significantly from previous decades).

  • Impact: Direct correlation with the reduction in Maternal Mortality Ratio (MMR).

  • MMR Definition: Deaths from pregnancy complications per 100,000 live births.

  • Medical Colleges: Number increased from 387 (in 2014) to 819 (in 2025).

  • MBBS Seats: Increased to 1.29 lakh; target set to add 75,000 more by 2030.

  • PPP Model: New medical colleges in Dhar and Betul are built under the Public-Private Partnership model.

  • Schemes: Success attributed to Janani Suraksha Yojana (JSY) and Pradhan Mantri Surakshit Matritva Abhiyan (PMSMA).

  • Accessibility: Focus on ensuring a doctor is available in every village.

  • Preventive Health: Shift in government focus from “Illness to Wellness”.

  • Infant Mortality: Improved institutional care has also lowered Infant Mortality Rate (IMR).

  • Aspirational Districts: Special focus on tribal districts like Dhar for health infrastructure.

  • Future Goal: 100% institutional deliveries to eliminate preventable maternal deaths.

• Source: The Hindu

9. Special Intensive Revision (SIR) of Electoral Rolls

• Context: The Election Commission of India (ECI) published draft electoral rolls after a Special Intensive Revision, removing lakhs of voters.

• About:

  • Process: Special Intensive Revision (SIR).

  • States Affected: Madhya Pradesh, Chhattisgarh, Kerala, Andaman & Nicobar.

  • Reason: To clean up rolls by removing dead, shifted, or duplicate voters.

• Key Points:

  • Total Deletions: Nearly 95 lakh electors removed across the four regions.

  • Madhya Pradesh: 42.74 lakh names deleted.

  • Chhattisgarh: 27.34 lakh names deleted.

  • Kerala: 24.08 lakh names deleted.

  • Categories: “ASD” List (Absent, Shifted, Dead).

  • Duplicates: 1.36 lakh duplicate entries identified and removed in Kerala alone.

  • Procedure: Voters can still apply for re-inclusion via Form 6 before final publication.

  • Final Publication Date: February 14, 2026.

  • Controversy: Allegations of removing genuine voters (e.g., migrant workers) without proper verification.

  • Demographic Analysis: In West Bengal (separate analysis), surnames like “Das” and “Singh” were disproportionately deleted, raising migration questions.

  • Significance: Accurate rolls are the bedrock of free and fair elections.

  • Technology: Use of software to detect photo and demographic similarities (duplicates).

• Source: The Hindu

10. Channapatna and Kinnal Toys: GI Challenges

• Context: The “Spotlight” section highlights the existential crisis facing the GI-tagged toy clusters of Karnataka.

• About:

  • Locations: Channapatna (Bengaluru Rural) and Kinnal (Koppal).

  • Status: Both have Geographical Indication (GI) tags.

  • Material: Traditionally made from ivory wood (wrightia tinctoria) and vegetable dyes.

• Key Points:

  • Workforce Crisis: Severe shortage of artisans as the younger generation migrates to cities for better-paying jobs.

  • Raw Material: Scarcity of ‘Polki’ (ivory wood) due to strict forest regulations.

  • Competition: Threat from cheap, mass-produced, toxic Chinese toys.

  • Economic Viability: Artisans earn low wages (approx ₹650/day) compared to city jobs.

  • Middlemen: Take the lion’s share of profits; toys sold for ₹700 yield only ₹200 to the artisan.

  • Government Schemes: Initiatives like “One Station One Product” have limited reach due to tendering costs.

  • Skill Gap: Government training programs are too short (25 days) to impart mastery (needs 6-12 months).

  • Health Safety: These toys are safe/non-toxic (vegetable dyes) but lack marketing compared to plastic toys.

  • Design Stagnation: Lack of design innovation to appeal to modern children.

  • Demand: Market demand exists (especially for exports/corporate gifts), but supply is constrained by labor.

  • Suggestion: Government procurement for Anganwadis (Shishu Palana Kendras) could provide steady income.

  • Cultural Heritage: Risk of losing a centuries-old craft legacy defined by Tipu Sultan era patronage.

• Source: The Hindu

11. Mullaperiyar Dam Structural Inspection

• Context: An underwater inspection using advanced technology has begun at the 129-year-old Mullaperiyar Dam amidst safety concerns.

• About:

  • Dam: Mullaperiyar (located in Kerala, operated by Tamil Nadu).

  • Technology: Remotely Operated Vehicle (ROV).

  • Objective: To assess structural integrity and underwater erosion.

• Key Points:

  • ROV Survey: Conducting a detailed sweep of the dam’s underwater face.

  • Granularity: The 1,200-ft structure is inspected in 100-meter and then 10-meter segments.

  • Issue: Previous studies showed leaching of lime-surki mortar, leaving stones exposed.

  • Depth: Erosion observed at depths of 110 ft.

  • Dispute: Long-standing conflict between Kerala (fears dam collapse) and Tamil Nadu (needs water).

  • Safety Review: Mandated by the Supreme Court-appointed Supervisory Committee.

  • Visual Data: The ROV captures high-resolution images of the “waterfront” area.

  • Structural Material: The dam is a gravity dam made of lime and surki (burnt brick powder), not concrete.

  • Seismic Threat: Concerns over the dam’s ability to withstand earthquakes.

  • Age: Built in 1895, it has far exceeded its intended lifespan (50 years).

  • Kerala’s Demand: Construction of a new dam downstream.

  • Tamil Nadu’s Stance: The dam is strengthened and safe; opposes new dam.

• Source: The Hindu

12. Conflict Over Grazing Reserves in Assam

• Context: Violence erupted in West Karbi Anglong district over the eviction of “outsiders” from government grazing lands.

• About:

  • Location: West Karbi Anglong, Assam (Sixth Schedule Area).

  • Lands Involved: Professional Grazing Reserves (PGR) and Village Grazing Reserves (VGR).

  • Tension: Between Karbi tribal groups and settlers (often Bengali-speaking Muslims).

• Key Points:

  • Demand: Local tribal bodies want eviction of illegal settlers from VGRs and PGRs.

  • Legal Status: These lands are reserved for grazing cattle and cannot be used for settlement/agriculture.

  • Sixth Schedule: The area is administered by the Karbi Anglong Autonomous Council (KAAC), which has land rights.

  • Violence: Mobs vandalized shops and attacked police; 38 personnel injured.

  • Internet Shutdown: Imposed to prevent rumor-mongering.

  • Sub-judice: The settlers have approached the Gauhati High Court, which stayed some eviction notices.

  • History: VGRs/PGRs were constituted during British rule for cattle rearing.

  • Demographic Fear: Tribals fear being outnumbered by “outsiders” on their own land.

  • Administration Response: Police used tear gas; government engaging in talks with stakeholders.

  • Political Angle: Pressure on the state government to protect indigenous land rights (Clause 6 of Assam Accord context).

  • Settlers’ Claim: They claim to have lived there for decades and possess land documents.

  • Impact: Disruption of peace in a sensitive autonomous district of the Northeast.

• Source: The Hindu

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THE HINDU

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