🇮🇳 Modi debunks Pakistan’s claims

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Ruchirr Sharma & Shatakshi Sharmaa  

TABLE OF CONTENTS

• 🇮🇳 Modi debunks Pakistan’s claims

• 💊 Impact of US drug pricing on Indian pharma sector

• 🗞️ Bite-sized summaries

  • 💰️ More cuts for Harvard

  • 🇺🇸 Trump signs deal with Saudi Arabia

• 🧑‍🍳 What else is cookin’?

MARKETS

🇮🇳 India

• Indian equities reversed sharply after Monday’s historic rally. The selloff was broad-based, led by declines in IT, auto, FMCG, and financial stocks, as renewed concerns over India-Pakistan tensions and global trade uncertainty spooked investors. In contrast, midcap and smallcap indices outperformed, closing in positive territory. The India VIX volatility index edged down 1.05% to 18.20, signaling persistent caution despite the broader market’s recent gains.

🌍️ International

• US stocks closed mixed on Tuesday as the S&P 500 and the Nasdaq Composite surged, both driven by a rally in technology shares-especially Nvidia, which jumped 5.6% after announcing a major AI chip deal with Saudi Arabia. Other chipmakers like Broadcom and AMD also posted strong gains. Softer-than-expected US inflation data (CPI up 2.3% year-on-year) fueled hopes of Federal Reserve rate cuts later this year, further boosting sentiment in tech and growth stocks

INDIAN ARMED FORCES

🇮🇳 Modi debunks Pakistan’s claims

In a direct and symbolic rebuttal to Pakistan’s recent disinformation campaign, Prime Minister Narendra Modi appeared publicly in front of India’s Sudarshan S-400 air defence system at the Adampur airbase, effectively dismantling Islamabad’s claims that it had destroyed the platform during recent hostilities.

What Pakistan Claimed:

Following India’s Operation Sindoor, Pakistan’s military and propaganda arms launched a series of false claims, asserting that:

• The S-400 system at Adampur had been destroyed by Pakistani hypersonic missiles.

• Indian airbases in Sirsa, Jammu, Pathankot, Bhatinda, Nalia, and Bhuj were hit.

• Ammunition depots in Chandigarh and Vyas were damaged.

• Indian missiles like BrahMos were rendered inoperable.

• An Indian pilot was captured.

These were amplified through fake videos, manipulated images, and social media campaigns, many of which were tracked back to TikTok footage or unrelated incidents (e.g., a 2024 Chile wildfire).

How India Responded:

• Modi’s surprise visit to Adampur was the most high-profile move. Standing in front of a fully operational S-400 system, the Prime Minister sent a visual and strategic message.

• The Ministry of External Affairs and PIB Fact Check released time-stamped images and videos of airbases and depots to counter the misinformation.

• Spokespersons including Colonel Sofiya Qureshi and BJP’s Amit Malviya called out Pakistan’s campaign as an effort to salvage domestic perception after Operation Sindoor.

• Claims of mosque damage and pilot capture were labeled fabrications aimed at sowing confusion.

Strategic Significance of the S-400

India’s S-400, named Sudarshan after Lord Krishna’s chakra, is a game-changer:

• Acquired from Russia under a ₹35,000+ crore deal.

• Capable of engaging 36 targets simultaneously, with 72 missiles ready for launch.

• Covers ranges from 40 km to 400 km, addressing threats from aircraft, ballistic missiles, and AWACS.

Why does this matter:

• This isn't just about military optics. By publicly countering each claim with evidence, fact-checking, and strategic visibility, India is asserting both military dominance and narrative control.

• The move also seeks to maintain international credibility at a time when tensions are high and misinformation can have geopolitical consequences.

Overall: As Modi stated during his earlier address, Operation Sindoor represents a new line in India’s anti-terror doctrine. Pakistan’s disinformation efforts seem aimed at softening the blow from that operation—but India’s calibrated response has left little room for doubt about who has the upper hand, both on the ground and in the information war.

Read more: Times of India

PHARMA

💊 Impact of US drug pricing on Indian pharma sector

Cipla’s MD and Global CEO Umang Vohra has said that the recent U.S. executive order aimed at lowering prescription drug prices is unlikely to affect Indian generic drugmakers.

The order, signed by President Donald Trump on May 12, sets a 30-day deadline for pharma companies to cut prices — or face regulatory measures that link U.S. drug costs to lower international prices.

Key Takeaways:

• Focus on branded drugs:
  Vohra clarified that the U.S. order appears targeted at branded drugs, not generics. “Generic prices in the U.S. are already competitive—often lower than global averages,” he noted.

•  Voluntary nature of order:
  The directive currently appears to encourage voluntary compliance, with unclear enforcement mechanisms, particularly around MFN (Most Favoured Nation) clauses.

• Tariff impact minimal:
  Even if the U.S. imposes tariffs on pharmaceutical imports, Vohra said Cipla doesn't foresee material disruption. Generics cater to affordability and access, which remains a bipartisan healthcare priority in the U.S.

• India-US trade talks pngoing:
  Discussions between the two governments continue. India, which currently levies 10% import duty on American drugs, enjoys zero-duty exports to the U.S. on its pharmaceutical products.

• Tariffs, will be mild:
  Vohra expects that even if tariffs are introduced, they will likely be lower than for general goods, and any cost impact will be a blend of absorption and pass-through.

Context:

• The U.S. administration is under pressure to cut domestic drug costs, and this move is a part of Trump’s ongoing healthcare agenda.

• Indian pharmaceutical firms like Cipla, Sun Pharma, and Dr. Reddy’s play a critical role in the U.S. generics market, supplying cost-effective alternatives to high-priced branded drugs.

• In April, the U.S. exempted India’s pharma sector from reciprocal tariffs, recognizing its role in global medicine supply chains.

Overall: Indian generic drugmakers remain largely insulated from the new U.S. order—at least for now. Cipla's confidence reflects the sector's strategic alignment with affordability goals in major markets like the U.S., shielding it from immediate policy shocks.

Read more: Economic Times

GENERAL OVERVIEW

🗞️ Bite-sized summaries

💰️ More cuts for Harvard - The Trump administration has cut an additional $450 million in grants to Harvard University, following last week’s termination of $2.2 billion in federal funding. A government task force cited the university’s alleged failure to address race discrimination and antisemitic harassment on campus. The administration also demands changes to Harvard’s hiring, governance, and academic programs to ensure ideological balance—conditions the university calls illegal. Harvard is suing over the funding freeze, arguing it violates institutional independence. The Department of Education has stated that future research grants will remain frozen until Harvard complies with the administration’s demands. Harvard has not yet commented.

🇺🇸 Trump signs deal with Saudi Arabia - During his first state visit to Saudi Arabia since re-election, U.S. President Donald Trump secured a $600 billion investment commitment from the Kingdom. The deal includes major pacts in energy, AI, aerospace, defense, healthcare, and infrastructure. Highlights include a $142 billion defense agreement, $20 billion investment in U.S. AI data centers, and multiple sector-specific funds. The White House called the agreement “transformative” for U.S.-Saudi relations. Trump met with Crown Prince Mohammed bin Salman and top U.S. CEOs, endorsing Saudi’s Vision 2030 reforms. Notably, Trump’s itinerary excludes Israel amid ongoing Gaza conflict and stalled normalization talks.

HEADLINES

🧑‍🍳 What else is cookin’?

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

• Israel PM Benjamin Netanyahu says army entering Gaza 'with full force' in coming days.

• Microsoft to lay off thousands to streamline management.

• Bharti Airtel Q4 Results: Adjusted PAT soars 77% YoY to Rs 5,223 crore; Rs 16 per share dividend declared.

• India's retail inflation eases to a 6-year low of 3.16% in April.

• Boeing deliveries nearly double in April.