MAINS Current Affairs includes India–New Zealand Relations & Proposed Amendments to NFSA

INTERNATIONAL

1. India–New Zealand Relations

Context: The Prime Minister of New Zealand recently emphasized the need for India and New Zealand to work together in strengthening a rules-based international order amid rising geopolitical tensions, strategic competition, and the gradual transition towards a more multipolar world.

The statement reflects the growing convergence between both countries on issues relating to the Indo-Pacific, international law, economic resilience, and global governance reforms. 

Changing Global Geopolitical Landscape

New Zealand described the present global environment as an “inflection point” characterized by major structural changes in international relations.

1. Shift from Rules-Based Order to Power Politics
   • The post-World War II international system was largely based on:
     • International law,
     • Sovereign equality of states,
     • Multilateral institutions such as the United Nations and WTO.
   • Increasingly, however, geopolitical competition and power rivalries are replacing rule-based cooperation.

2. Rise of Multipolarity

The world is gradually moving away from:

• A US-led unipolar order,

towards:

• A multipolar system involving:
  • United States,
  • China,
  • European Union,
  • India,
  • Russia,
  • Middle powers.

Both India and New Zealand support a stable and inclusive multipolar world order.

3. Growing Chinese Influence in the Indo-Pacific

• China’s increasing military and economic footprint in the Indo-Pacific has emerged as a major strategic concern.
• Issues include:
  • South China Sea disputes,
  • Maritime militarization,
  • Supply chain vulnerabilities.
• India and New Zealand share an interest in maintaining:
  • Freedom of navigation,
  • Respect for international law,
  • Open and secure sea lanes.

4. Russia-Ukraine Conflict

The Russia-Ukraine war has:

• Disrupted global energy and food markets.
• Increased geopolitical polarization.
• Raised concerns regarding sovereignty and territorial integrity.

5. Changing US Priorities

The gradual reorientation of American strategic priorities has created uncertainty regarding:

• Security arrangements,
• Trade partnerships,
• Multilateral institutions.

This has increased the importance of middle-power partnerships such as India-New Zealand cooperation.

India–New Zealand Relations

• Diplomatic Relations: India and New Zealand established their diplomatic relations in Both countries are members of the Commonwealth, sharing democratic values and governance principles.
  • New Zealand identified India as a priority country in its ‘Opening Doors to India’policy notified in 2011, which was reiterated in
• Economic Cooperation: Currently, New Zealand is India’s second-largest trading partner in Oceania.
  • In 2024, New Zealand’s imports stood at USD 47 billion, while exports were USD 42 billion. 
  • Services Trade: India’s services exports to New Zealand grew by 13% in 2024,reaching USD 634 million. Major sectors include travel, IT, and business services.
  • In 2024-25,the exports from India to New Zealand were higher than imports from New Zealand, maintaining a positive trade balance with the country.
  • India and New Zealand signed the India- New Zealand Free Trade Agreement (IN- NZ FTA).
• Customs Cooperation: In 2024, New Zealand and India signed a Customs Cooperative Arrangement, aimed at enhancing trade ties and intensifying collaboration against transnational organized crime.
• Diaspora: There are 292,092 persons of Indian ethnicity in NZ. 
  • India is the 2nd largestsource of international students in NZ. Currently, there are approximately 8,000 Indian students in NZ, pursuing higher education in various disciplines such as IT, hospitality, science, engineering, and architecture.
  • Hindi is the fifth most spoken language in NZ.
• Defence Cooperation: Signed in 2025, the Defence Cooperation Memorandum of Understanding provided a formal institutional framework for bilateral defence engagement.
  • The inaugural India–New Zealand Defence Strategic Dialoguewas held in New Delhi in

Challenges in Bilateral Relations

1. Dairy Market Access

• This remains the single largest obstacle in FTA negotiations.

New Zealand’s Position:

• Seeks greater access for dairy exports.

India’s Concerns:

• India’s dairy sector supports millions of small farmers.
• Cheap imports may adversely affect rural livelihoods.

2. Labour Mobility Issues

Differences remain over:

• Skilled migration rules,
• Visa policies,
• Professional mobility arrangements.

3. Immigration Concerns

• Recent changes in immigration policies in New Zealand have raised concerns among Indian migrants and students.

4. Khalistan Issue

India has expressed concerns regarding:

• Activities of pro-Khalistan groups in New Zealand.
• New Zealand generally addresses these issues within the framework of:
• Freedom of expression,
• Democratic rights.
• This occasionally creates differences in perception.

Way Forward

• Accelerate FTA Negotiations

• Address concerns related to dairy and labour mobility through phased liberalization.
  • Strengthen Defence Cooperation
• Expand naval exercises and maritime collaboration.
  • Enhance Educational Exchanges
• Increase scholarships and academic partnerships.
  • Promote Investment
• Encourage businesses to explore opportunities in agriculture, technology and renewable energy.
  • Deepen Indo-Pacific Cooperation
• Coordinate positions on maritime security and international law.

Conclusion

Although geographically distant, India and New Zealand share common democratic values, strong people-to-people ties, and converging strategic interests in the Indo-Pacific region. As global politics moves towards greater uncertainty and multipolarity, stronger cooperation between the two countries can contribute significantly towards regional stability, economic resilience, and the preservation of a fair and rules-based international order.

GOVERNANCE

2. Proposed Amendments to NFSA

Context: The Department of Food and Public Distribution has released a draft proposal to amend the National Food Security Act (NFSA), 2013 with the objective of rationalizing foodgrain distribution, particularly for beneficiaries covered under the Antyodaya Anna Yojana (AAY) category.

The proposed changes seek to address inequities in the present allocation system while improving targeting efficiency under the Public Distribution System (PDS).

National Food Security Act (NFSA), 2013: An Overview

The National Food Security Act was enacted in 2013 to provide legal entitlement to subsidized foodgrains to a large section of India’s population.

Objectives of NFSA

• Ensure food and nutritional security for vulnerable populations.
• Provide access to affordable foodgrains through the Targeted Public Distribution System (TPDS).
• Reduce hunger, malnutrition and food insecurity.
• Protect poor households against income shocks and inflation in food prices.
• Promote social justice and inclusive development.

Coverage Under NFSA

The Act covers:

• 75% of the rural population
• 50% of the urban population

Based on Census 2011, this translated into approximately 81.35 crore beneficiaries.

• Eligible households receive subsidized foodgrains based on:
  • Antyodaya Anna Yojana (AAY) households:  These households constitute the poorest of the poor. AAY households are entitled to 35kg of food grains per household per month.
  • Priority Households (PHH): These households are entitled to 5kgof food grains per person per month.
• Under this, Central issue prices are highly subsidized (Rs 3/kg for rice, Rs 2/kg for wheat, and Rs 1/kg for coarse grains).
• Also, pregnant and lactating women are entitled to a cash maternity benefit of not less than Rs. 6,000.

Other Important Provisions of NFSA

Maternity Benefits

• Pregnant and lactating women are entitled to:

Cash maternity assistance of at least ₹6,000

• This provision aims to improve maternal and child nutrition.

Nutritional Support for Children

The Act also provides:

• Mid-Day Meals for school children.
• Supplementary nutrition under ICDS for children below six years.

Merger with PM Garib Kalyan Anna Yojana (PMGKAY)

• During the COVID-19 pandemic in 2020, the Government launched:

Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY)

Objective:

• Provide additional foodgrains free of cost to NFSA beneficiaries.

Major Development

From January 2023:

• PMGKAY was merged with NFSA.
• The regular NFSA entitlement itself became free of cost.

Later, the Government extended free foodgrain distribution for: Five years (2024–2028)

Proposed Amendments to NFSA

• A new provision In Section 3 of the National Food Security Act, 2013, proposes thatevery person belonging to households covered under the Antyodaya Anna Yojana (AAY) shall be entitled to 7 kg of foodgrains every month to a maximum of 35 kg per household. 
  • Earlier, it was 35 kg per AAY household, irrespective of the number of members in the household.
• For AAY cardholders, this allocation will be free of any charges. 
• Rational behind the proposal: Rationalise foodgrain allocation by addressing the imbalance whereby smaller households receive disproportionately higher per-capita entitlements than larger households.

Concerns

• Inadequate Nutritional Security: The amendment focuses exclusively on cereals and does not include pulses, edible oils, or other nutrient-rich foods.
• Demand for Higher Entitlement:Right to Food activists have demanded 14 kg of foodgrains per person instead of 7 kg, particularly for the poorest households.
• Disadvantage to Large Families: The amendment retains the ceiling of 35 kg per household. As a result, larger households would continue to receive lower per-capita allocations than intended.
• Regional Disparities: Smaller households (nuclear families), which are more common in southern States, may receive lower foodgrain allocations than under the existing system.
• Outdated Coverage: The coverage of the National Food Security Act continues to be based on the 2011 Census despite significant population growth. Millions of eligible households are estimated to remain outside the ambit of the Public Distribution System.
• Implementation Challenges:The amendment does not address operational issues affecting the Public Distribution System.
  • Biometric authentication failures, e-KYC-related exclusions, connectivity issues,and difficulties faced by migrant workers, elderly persons, and persons with disabilities continue to prevent eligible beneficiaries from accessing their foodgrain entitlements.

Way Ahead

• Update NFSA beneficiary coverage using the latest Census data to reflect current demographic realities.
• There is a need to ensure thatno existing beneficiary experiences food insecurity due to the transition.
• Consider supplementing cereals with pulses, edible oil, and fortified foodsto improve nutritional security.
• There is a need for consultations with States to build consensus and strengthen cooperative federalismbefore finalising the amendment.

Conclusion

The proposed amendment represents an important attempt to make foodgrain allocation under the Antyodaya Anna Yojana more equitable and rational. However, food security in modern India requires moving beyond calorie provision towards comprehensive nutritional security. Updating beneficiary coverage, reducing exclusion errors, and diversifying the food basket will be essential to ensure that the National Food Security Act continues to serve as an effective instrument of social protection and inclusive development.

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