Fast Fix, Long-Term Risks

CORE CONVERSATION

'Strict Supervision Needed': Pharmarack's Sheetal Sapale On India's Anti-Obesity Drug Boom

What?

Weight-loss drugs have captured popular interest in India recently, with several celebrities speaking about their own journeys with them. The popularity of these drugs isn’t just restricted to celebrities. Demand for weight loss drugs is zooming in India even as drug giants Eli Lilly and Novo Nordisk are facing off in the market with their respective drugs.

Latest Pharmarack data shows that Eli Lilly's Mounjaro, which was launched in March doubled its sales in June to 87,986 units in comparison to May. Between March and May, Lilly had sold 81,570 Mounjaro units in India.

The main drivers of the overall anti-obesity segment are semaglutide and tirzepatide, which represent about 75% of the anti-obesity market.

Why Now?

Sheetal Sapale, vice president at Pharmarack, said on The Core Report that high sales were because of awareness. “It has already been there globally. That's why people know about the efficacy of the product,” Sapale said.

Semaglutide dominates with about 66% market share. Pharmarack said earlier drugs like AOrlistat restricted fat absorption, while the Indian diet is more carbohydrate-rich.

The newer drugs are focusing on the suppression of appetite, lowering of gut mobility, leading to a longer feeling of fullness in the stomach. “You tend to lose at least 20-30% of your weight in the initial five to six months,” Sapale said.

On the other hand, while anti-obesity drugs do provide the initial momentum needed in the weight loss journey, the diet balance in terms of protein intake and other vital nutrients becomes important while one is on anti-obesity drugs. “If one reads the fine print very well, these drugs do have their list of side effects,” Sapaale said.

Sapale also spoke about why these particular drugs are so popular and the possible long-term challenges that can arise from taking them.

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CORE NUMBER

150 billion units

That’s India’s total power demand in June 2025, down 1.9% year-on-year (YoY), according to Crisil’s Sector Vector report.

📌 The details:

Power demand declined for the second straight month, thanks to above-normal monsoon rainfall that cooled temperatures and curbed air-conditioning load.

In contrast, southern India saw a 5.3% rise in demand, driven by a rainfall deficit.

Meanwhile, power generation dipped 0.8% YoY to 161 billion units.

The average market clearing price (MCP) in the real-time market fell 26% YoY to Rs 3.73/unit, reflecting oversupply and soft consumption.

🧾 Why it matters:

With rainfall covering the country early and reducing peak temperature loads, power usage has eased, providing breathing room for coal inventories and helping lower power prices.

Trade Talks Extended Again! India and the US have pushed their trade deal deadline from July 9 to July 31, reported The Mint. While Trump rolled out new tariffs for 14 countries—up to 40% in some cases — India was notably spared. Talks are ongoing, with both sides aiming to avoid a last-minute clash the report said.

This comes after Trump said on Monday that the two countries were close to signing the deal.

Implications: Sticking points include agriculture, dairy, GM seeds and digital trade. India is resisting pressure to accept terms like Vietnam’s deal, which still carries a 20% tariff.

What This Means Going Forward: Until a deal is finalised, India’s tariff on select US goods remains 26%. Analysts warn that the agreement may reflect more pressure than reciprocity.

NBFCs Rethink Education Loans. Education loans have emerged as the fastest-growing asset class for India’s non-banking finance companies (NBFCs). According to a Crisil report, growth is slowing—from 77% in FY24 to a projected 25% in FY26—as disbursements to US students shrink amid visa restrictions and policy shifts.

By the Numbers: Loan AUM surged to Rs 64,000 crore in FY25 and is expected to touch Rs 80,000 crore this year. However, disbursements to the US fell 30%, and Canada also saw a dip due to stricter visa rules. Overall disbursement growth declined to just 8% in FY25, down from 50% the previous year.

What’s Next? NBFCs are now pivoting to the UK, Germany, Ireland and smaller countries. Domestic products, such as skill development and school loans, are also gaining attention, although their portfolio share remains small. Asset quality remains stable, but 85% of AUM is still under moratorium, keeping regulators alert.

India Drafts Scheme for Rare Earths. India is in the process of drafting guidelines to incentivise domestic production and processing of rare earth minerals and magnets, sources told Bloomberg The potential government-backed scheme will be worth 2,500 crore rupees and already, companies like Vedanta, JSW and Sona Comstar are preparing to begin production. 

Backdrop: India has 6% of the world’s supply of rare earth minerals but doesn’t have the capacity to process it, as The Core previously covered. 

Critical Moment: China has a monopoly on rare earth mineral processing plants, and since it halted its supply, India has been seeking other sources. The country has reached out to Australia, Japan and Vietnam.

US Embassies Resume Visa Appointments. US embassies in India have resumed seeing students for visa interviews for F, M, and J categories (student and exchange visas), according to a report by The Economic Times. The report also said that embassies will have to deal with a huge backlog of applications, since they halted visa appointments at the end of May. 

Catch Up Quick: Though the US remains a top destination for Indian students, there’s been a drop in the number of visas the US issued to Indians – this started even before US President Trump took power in January 2025.

Flashpoint: Trump has been cracking on undocumented migrants as well as students who’ve expressed support for Palestine. As The Core previously covered, Indians are now increasingly looking elsewhere to study abroad, like Australia, Europe, Canada, Luxembourg, and UAE.

PODCAST

On Episode 628 of The Core Report, financial journalist Govindraj Ethiraj talks to Vijai Mantri, Co-Founder & Chief Investment Strategist at JRL Money as well as Vibhuti Garg, Director – South Asia at Institute for Energy Economics and Financial Analysis (IEEFA).

• Markets look for cues even as Trump announces fresh tariff threats.

• Mining and metals giant Vedanta faces an Hindenberg moment with short seller Viceroy.

• Why and how India’s market regulators have to disincentivse derivatives trading.

• Monsoon data is looking good, as is the cropping and agriculture patterns.

• Demand for education loans drop as visas get tighter.

• India’s energy demand has dropped for first time since 2020 and renewable energy including nuclear see big production spikes.

👥 THE TEAM

✍️ Zinal Dedhia, Salman SH, Kudrat Wadhwa | ✂️ Rohini Chatterji | 🎧 Joshua Thomas