Seven years ago, the NSE International Exchange (NSE IX) was inaugurated with great enthusiasm at GIFT City, which aims to position India as a global financial hub akin to Singapore or London. However, the anticipated growth has not materialized as expected. Despite a well-structured framework and political backing, NSE IX has been slow to gain traction. This is where Neeraj Kumar Gupta steps in.

The former Union Finance Secretary and expert in disinvestment has taken on the role of Chairman and Public Interest Director at NSE IX. With extensive experience in navigating bureaucratic challenges, including managing public sector undertakings and equity ETFs, Gupta's leadership is seen as pivotal for the future of NSE IX.

What are the barriers to the exchange's success? Primarily, Indian firms continue to seek capital abroad—turning to markets in Singapore, London, and New York. Meanwhile, global investors lack compelling reasons to focus on India. Additionally, GIFT City’s regulatory body, IFSCA, has yet to fulfill its promise as a comprehensive regulatory solution, still relying heavily on the existing frameworks of SEBI and RBI, which may not suffice.

For NSE IX to attract the financial attention it aspires to, it must provide a level of transactional convenience that surpasses Singapore, rather than merely imitating it. This entails quicker approvals, reduced compliance burdens, and a more investor-centric approach. Gupta is well-equipped to bridge gaps and foster communication among regulators—now is the time for him to demonstrate this capability. The pressure is on.

Slow Progress on the 8th Central Pay Commission

It has been nearly four months since the government approved the formation of the 8th Central Pay Commission (CPC), yet there have been no significant updates. Rumors suggest that progress is finally being made, but it appears to be more indicative of bureaucratic sluggishness than decisive action.

The government is gradually finalizing the terms of reference and selecting the chairperson and members. Remarkably, discussions are still focused on assembling the team rather than drafting a report or conducting consultations.

The customary ten-year review of salaries and pensions for Central government employees is expected to consider factors like cost of living, economic conditions, and inflation. Given that this impacts nearly 5 million Central employees and 6 million pensioners, one would expect a sense of urgency in the process.

Instead, we witness the typical slow progression. An internal memo was circulated last week inviting applications for 35 positions on a deputation basis—indicating that the office is still in the early stages of development.

If everything proceeds smoothly (which is a significant if), the 8th CPC might deliver its report by mid-2026, with retroactive salary and pension adjustments potentially occurring in 2027-28. This would mark a full decade since the last revision in 2016. With inflation eroding purchasing power, asking individuals to wait this long is unreasonable. It's essential to remember that people spend based on reality, not just principles. The pace needs to quicken.

Significant Administrative Changes

Typically, government reshuffles of bureaucrats go unnoticed, resembling a game of musical chairs—routine and largely unremarkable. However, occasionally, a notable shift occurs, and this time it has.

The recent administrative changes have revealed more than just a list of new appointments; they have highlighted a clear frontrunner: the IAS batch of 1994. In an unprecedented move, nine officers from this cohort have been promoted from Additional Secretary to Secretary, with two others appointed as Special Secretaries. This marks eleven influential figures from the same batch now holding top bureaucratic positions in India.

This development is significant because it transcends mere administrative changes; it represents a strategic power play. Many of these officers have previously held trusted positions in the Prime Minister’s Office and the Cabinet Secretariat—roles that prepare them not only for governance but also for understanding the government's strategic vision. For instance, Arvind Srivastava, now the Revenue Secretary, was recently with the PMO, while Anuradha Thakur, the new Economic Affairs Secretary, has experience in the Cabinet Secretariat. Their current roles place them at the core of India's financial and economic policy-making.

The rise of this cohort signals more than just seniority; it indicates a consolidation of administrative leadership aligned with the government's priorities.

While it is not unusual for a group to rise together, the scale and strategic positioning of this batch warrant close observation. The class of '94 is not merely advancing—they are stepping into roles that will shape the future.

As the financial landscape evolves, the roles of key figures like Neeraj Kumar Gupta and the implications of administrative reshuffles will be crucial in determining the direction of India's economic policies and financial markets.