💊 Is Indian pharma in trouble?

Good morning. Fun fact: Today, 7th August, is National Handloom Day in India, marking the Swadeshi Movement launched in 1905.

A day to celebrate India’s rich textile heritage and promote indigenous handloom artisans 🧵💟 

Ruchirr Sharma & Shatakshi Sharmaa  

TABLE OF CONTENTS

• 💊 India’s pharma giants are bracing for a bitter pill from Washington

• Bite-sized summaries

  • 💸 UPI may not stay free forever, warns RBI governor

  • 🚗 Uber seeks funding to accelerate Robotaxi expansion

• 🧑‍🍳 What else is cookin’?

MARKETS

🇮🇳 India

• Indian markets ended mixed. Losses were led by IT, pharma, and realty sectors after the Reserve Bank of India kept rates unchanged and maintained its growth forecast. Persistent US tariff threats and weak global cues also weighed on investor sentiment.

🌍️ International

• US markets ended higher as tech stocks, led by Apple, rallied strongly. Positive investor sentiment was supported by robust corporate earnings and Apple’s new investment plans despite ongoing tariff news and economic concerns.

POLICY

💊 India’s pharma giants are bracing for a bitter pill from Washington

Indian drugmakers are on edge as the US flirts with the idea of slapping new tariffs on pharmaceutical imports - a potential blowback for India’s continued oil purchases from Russia.

While the first round of Trump’s August 1 tariffs spared pharma, the sector is still under review as part of a broader national security investigation under Section 232 of the Trade Expansion Act. Translation: Pharma isn’t out of the woods yet.

Companies like Lupin say they’re preparing for the worst — talking price flexibility, tech transfers to US soil, and scenario planning. CEO Vinita Gupta told investors that even a 10–15% tariff wouldn’t be a showstopper. The bigger fear? If the number balloons to 150–200% — numbers that have been whispered, if not confirmed.

Still, many in the industry think Washington will tread carefully. Generic drugs from India make up a huge chunk of America’s medicine cabinet — and they run on razor-thin margins. Hike prices too much, and US healthcare costs could spike. It’s not just about business; it’s about access to affordable treatment.

The Indian Pharmaceutical Alliance echoed this, saying the India–US partnership is crucial for global healthcare resilience, especially for securing API (active pharmaceutical ingredients) supply chains.

Bottom line: Tariffs on Indian pharma could hurt both sides. Indian firms are preparing to absorb the shock - but everyone’s hoping cooler heads prevail in Washington. Because no one wants to mess with America’s prescription drug supply.

Read more: Economic Times

GENERAL OVERVIEW

🗞️ Bite-sized summaries

💸 UPI may not stay free forever, warns RBI governor - UPI may not remain free forever, according to RBI Governor Sanjay Malhotra, who highlighted the need for a sustainable model where someone bears the cost of running the system. While the government currently subsidises UPI, Malhotra noted that this zero-cost structure cannot last indefinitely. His comments follow ICICI Bank's move to introduce processing charges for payment aggregators, sparking speculation that others may follow. With digital payments surging—over 18 billion UPI transactions took place in June alone—banks and service providers are shouldering rising costs. Although users aren’t being charged yet, the future of truly free UPI transactions is now in question.

🚗 Uber seeks funding to accelerate Robotaxi expansion - Uber is in talks with banks and private equity firms to raise funds for its robotaxi expansion, aiming to deploy over 20,000 self-driving vehicles through a $300 million partnership with Lucid and Nuro. Already offering Waymo-powered robotaxis in Austin and Atlanta, Uber is testing three business models: paying partners a fixed rate, sharing revenue with fleet operators, and owning vehicles while licensing software. CEO Dara Khosrowshahi said financing will follow once the revenue model is proven. Though still using a modest portion of its $7 billion annual cash flow, Uber may sell stakes to support growth in this rapidly evolving sector.

HEADLINES

🧑‍🍳 What else is cookin’?

What’s happening in India (and around the world 🌍️)

• TCS layoffs: No employee has complained, IT firm tells Karnataka labour authority.

• Trump executive order imposes additional 25% tariff on India over Russian oil purchase.

• Airtel bets on IPOs, digital expansion for next growth phase.