Prime Minister Christopher Luxon is set to announce a new National Party policy this morning alongside Trade Minister Todd McClay.Luxon will be speaking to media around 11am at a waterfront location in Auckland. His announcement will be livestreamed at the top of this article.It comes six days before Indian Prime Minister Narendra Modi makes a whistle-stop visit to New Zealand amid swirling contention over the free trade agreement (FTA) both countries recently signed.Luxon recently confirmed Modi would arrive in Auckland on Friday and depart the next day, marking the first such visit by an Indian PM in 40 years.While Luxon has championed Modi’s impending visit as “historic”, the coalition Government’s disagreement over the FTA deal and its contents has exposed deeper friction over the issue.Foreign Affairs Minister Winston Peters – whose party, New Zealand First, is strongly opposed to the new deal – recently alleged National ministers were “covertly” tightening immigration settings for Indians off the back of “poor polling”.“We told the New Zealand people that [the deal] would mean open-slather immigration from India to New Zealand,” Peters said in Parliament.“But the National Party has just changed its course – no doubt due to poor polling – and they have done so covertly.”Immigration Minister Erica Stanford later warned the coalition’s infighting could be potentially damaging to New Zealand’s relationship with the Indian government.“I certainly don’t think it’s helpful for the relationship that we have with the Indian government for this to be playing out; it’s not helpful at all,” she told reporters at Parliament.“I’m just trying to do my best as the Immigration Minister to try and work out what it is that Mr Peters wants.“I’ve made decisions around tightening up to make sure that I’ve tried to keep everyone happy and now he’s not happy with that.”In response, Peters rejected Stanford’s version of events and urged journalists to request the relevant documents.Sign up to The Daily H, a free newsletter curated by our editors and delivered straight to your inbox every weekday.