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💴 India's Forex reserves
PLUS: Trump’s tariffs and the quality crisis
Good morning. It’s already mid week and the trailer for the season 3 finale for The White Lotus has dropped. The week is shaping up nicely, keep it going 💪
- Ruchirr Sharma & Shatakshi Sharmaa
TABLE OF CONTENTS
💊 India's pharma industry faces a wake-up call: Trump’s tariffs and the quality crisis
💴 India's Forex reserves
🗞️ Bite-sized summaries
🏦 RBI’s $70B boost ends India’s Cash Crunch
🏗️ US approves Holtec to build nuclear reactors in India
🧑🍳 What else is cookin’?
🍿 Entertainment, Entertainment, Entertainment
MARKETS
🇮🇳 India

indicates per gram rate in Delhi | Stock data as of market close 01/04/2025
Indian markets fell sharply on the first trading day of FY26 amid tariff fears. IT and financial sectors led the losses, with heightened volatility reflecting investor uncertainty over global trade policies
🌍️ International

Stock data as of market close 01/04/2025
US markets ended mixed as investors awaited details on President Trump’s reciprocal tariffs. Concerns about inflation and economic slowdown kept market sentiment cautious.
PHARMA
India’s pharmaceutical industry, a global powerhouse for generic drugs, is facing a serious challenge. With U.S. President Donald Trump proposing tariffs on pharmaceutical imports—potentially as high as 25%—Indian drug manufacturers, which export over 30% of their products to the U.S., could see their revenues take a hit.
While the immediate impact of these tariffs remains uncertain, the bigger issue at hand is the industry’s long-standing quality concerns.
Here’s what’s happening:
India supplies around 40% of the U.S.’s off-patent drug formulations, making its generics a crucial component of affordable healthcare.
However, past safety scandals have raised red flags. Reports of contaminated medicines causing fatalities in Uzbekistan and Gambia, as well as antibiotic-resistant bacteria in Indian-made eye drops leading to blindness in the U.S., highlight the dire need for stricter quality control.
The U.S. Food and Drug Administration (FDA) is already behind on inspections, with over 340 plants in India and China remaining unchecked for more than five years.
Meanwhile, some Indian manufacturers have been accused of deliberately deceiving inspectors, further eroding trust in the industry.
This lack of oversight has allowed substandard practices to persist, with patients and doctors largely unaware of the risks.
Trump’s tariffs may not immediately include pharmaceuticals, but the industry cannot afford complacency. The real threat is not just trade restrictions but the potential loss of global confidence in Indian generics. If quality concerns continue, other countries may seek alternatives, diminishing India's role as the world’s pharmacy.
The solution? Reform. Indian pharmaceutical companies must shift their focus from maximizing exports to ensuring quality. Stronger regulatory oversight, better corporate governance, and more stringent compliance measures are essential. The government should invest in a more efficient drug regulatory framework, ensuring that Indian medicines remain indispensable worldwide.
Overall: Ultimately, this is not just about protecting exports—it’s about safeguarding the health of millions, both in India and abroad. A failure to act now could cost the industry its reputation and its future.
Read more: Economic Times
FOREX
India has secured its position as the fourth-largest holder of foreign exchange reserves, with USD 658.8 billion as of March 25, 2025. According to Finance Minister Nirmala Sitharaman, this is sufficient to cover 11 months of imports, reinforcing India's financial stability despite global uncertainties.
Why this matters for India
Foreign exchange reserves are crucial for maintaining economic stability, ensuring the country can meet its international obligations, and safeguarding against external shocks. India’s robust reserves reduce vulnerability to currency fluctuations and external economic pressures, such as inflation and trade imbalances.
Impact on the Indian Economy
Rupee stability: While many global currencies, including the British Pound and the Euro, have seen significant depreciation, the Indian rupee has remained relatively strong, depreciating only 2.2% against the US dollar—less than other major Asian currencies.
Foreign investor confidence: Although foreign portfolio investors withdrew approximately USD 19.9 billion between October 2024 and March 2025, fresh investments of USD 3.84 billion in March indicate renewed confidence in India’s markets.
Reducing current account deficit (CAD): India's CAD has steadily declined from USD 67.1 billion in 2022-23 to USD 21.4 billion in 2024-25, a sign of a strengthening economy and improving trade balance.
The road ahead: Despite a slight dip in reserves, India's financial position remains strong. The government continues to promote exports and enhance economic resilience. A stable rupee, backed by substantial forex reserves, ensures that India can withstand external economic pressures, making it a key player in the global economy.
Addressing challenges such as capital outflows and global uncertainties will be crucial. However, India's consistent economic growth and prudent financial management provide optimism for the future.
Read more: Economic Times
GENERAL OVERVIEW
🗞️ Bite-sized summaries

🏦 RBI’s $70B boost ends India’s Cash Crunch - India’s banking system returned to surplus liquidity for the first time in over three months, thanks to the Reserve Bank of India’s (RBI) aggressive cash injections. The RBI infused over $70 billion since January to counter a severe cash crunch caused by dollar sales and corporate tax payments. This liquidity boost has lowered borrowing costs and brought 10-year bond yields to a three-year low. With another rate cut expected on April 9, further RBI interventions may be needed to sustain liquidity. Government spending and surplus transfers could also ease conditions in the coming months.
🏗️ US approves Holtec to build nuclear reactors in India - The US has approved Holtec International to transfer small modular reactor (SMR) technology to India, marking a breakthrough in the stalled Indo-US nuclear deal. Holtec will collaborate with Indian firms like Larsen & Toubro and Tata Consulting Engineers but must adhere to US restrictions on technology transfers. This move follows discussions between PM Modi and President Trump, reaffirming their commitment to nuclear cooperation. India may amend its Atomic Energy Act to allow private investment in nuclear power. The country currently operates 22 reactors, with nuclear energy seen as vital for economic growth and clean energy goals.
HEADLINES
🧑🍳 What else is cookin’?
What’s happening in India (and around the world 🌍️)
OpenAI raises $40 billion at valuation of $300 billion.
Zomato lays off 500 employees from customer service roles
Trump could serve a third term. Here's how.
Boeing has made 'serious missteps in recent years': CEO testimony.
India subsidised over a million electric two-wheelers in fiscal 2024-25.
CULTURE
🍿 Entertainment, Entertainment, Entertainment

Source: Getty Images
Sydney Sweeney, Amanda Seyfried debut first trailer for thriller The Housemaid.
John Wick 5 set with Keanu Reeves and director Chad Stahelski.
IPL 2025: PBKS beat LSG by 8 wickets. Leaderboard here.
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That’s all for today folks - have a lovely day and we’ll see you tomorrow.