Oct 2: India’s Superbug-Busting Antibiotic, U.S. Gov Shuts Down

Hollywood’s biggest performers union has officially condemned the rise of ‘Tilly Norwood,’ an AI-generated actress. This is the exact moment actors dreaded during the great writers' strike: a star who doesn’t need a vanity van, demand $50M per film, or throws tantrums at 3 am. Tilly Norwood is the perfect leading lady, requiring only GPU cycles and zero organic screen time. Will Bollywood catch on? Will we see an AI Sallu bhai, will we continue to see Thalaivar Rajni eternally in movies? Critical questions remain unanswered.

In other news, remember when we asked Mohsin Naqvi to hand the Asia Cup back? Well, looks like he listened - DD influence, confirmed.

Now, let’s get into the Dispatch! 🚀

Today’s reading time is 6 mins.

The Indian stock market indices snapped their eight-day losing streak on Wednesday, October 1, reversing the trend after RBI projected healthy growth-inflation dynamics for the country and maintained its repo rate and policy stance.

The Superbug Crisis: Antimicrobial resistance (AMR), the ability of germs such as bacteria, viruses, fungi, and parasites to outsmart the drugs designed to kill them, is fast becoming one of the gravest health threats of our time. These so-called “superbugs” thrive when antibiotics and other medicines are overused, learning new ways to resist treatment. The numbers are already alarming: in 2019, antibiotic-resistant bacteria were directly responsible for 1.27 million deaths worldwide and contributed to nearly 5 million more.

India On The Brink: Nowhere is the crisis starker than in India. Drug-resistant infections claim nearly 300,000 Indian lives every year, more than HIV, malaria, or breast cancer. According to the Indian Council of Medical Research (ICMR), AMR could shave off 2–3% of India’s GDP by 2050 if left unchecked. Hospitals, particularly intensive care units, are at the frontlines. India, the largest consumer of antibiotics in Asia, has seen rampant over-the-counter sales accelerate resistance, leaving doctors scrambling for effective treatments.

A Breakthrough From Mumbai: Against this grim backdrop, an Indian innovation has sparked hope. Zaynich, developed by Mumbai-based Wockhardt, is India’s first new antibiotic in over three decades and it’s being hailed as a breakthrough globally. In clinical trials, Zaynich demonstrated a 97% effectiveness rate against drug-resistant Gram-negative bacteria and achieved a 20% higher cure rate than Meropenem, the gold standard for severe hospital infections. Doctors describe it as nothing short of a potential turning point in critical care medicine.

Handle With Care: But with promise comes responsibility. Experts warn that Zaynich must not go down the familiar path of overuse and misuse. Its role should be restricted to hospital-acquired infections and prescribed strictly when culture reports confirm necessity. Without careful stewardship, resistance will inevitably catch up and this “last-resort” drug could be lost, just like others before it.

What Lies Ahead: Wockhardt plans to launch Zaynich in India later this year (with a global roll out by 2025-26) pending approval from the Drugs Controller General of India (DCGI). The company, a global pharmaceutical player with facilities across India, the UK, US, Ireland, and France, believes the drug could save countless lives at home and abroad. For India, Zaynich represents more than just a medical breakthrough, it is a chance to rewrite the narrative of the AMR crisis. But whether it becomes a lifesaver or another squandered weapon depends on how wisely it is deployed.

New Doors, New Dollars: India’s free trade agreement with the European Free Trade Association (EFTA) goes into force today. The deal promises to funnel $100 billion in investment over 15 years and generate around 1 million jobs, shifting the dynamics of India–Europe trade.

Export Engines & Import Treats: Under the pact, India slashes duties on most non-agricultural and processed goods, giving a boost to sectors like textiles, machinery, gems & jewellery, and chemicals. On the flip side, Indian consumers may soon enjoy cheaper chocolates, wine, Swiss watches and clocks as tariffs are phased down.

Built-In Safeguards: India retains the right to reverse tariff cuts if EFTA nations fail to fulfill their investment commitments. The investment schedule unfolds in two phases: $50 billion in the first decade, and the remaining $50 billion over the next five years. India’s EFTA pact is a bold bet on liberalisation. But its success will hinge on follow-through, balance, and the resilience of local industries. 

Home prices surge: According to latest Housing Price Index (HPI) report by Housing.com and ISB, house prices in Indian cities have continued to surge year on year. HPI has risen 14 points year-on-year and 8 points over last quarter, showing sustained upward pressure on residential property prices. NCR lead the charge with an insane 42 point jump over last year, while Bengaluru and Hyderabad posted 20+ point gains. Mumbai’s luxury and ultra luxury segment continues to command premium prices due to limited land and rising construction costs. 

What it all means for homebuyers: With prices soaring and income growth failing to keep pace, many urban buyers are finding it increasingly difficult to manage hefty down payments, registration fees, and monthly EMIs. The result? even those with stable jobs are feeling stretched, and home sales in top metro areas have begun to dip as affordability pressures mount. 

Tier 2 showing stability: Smaller cities and peripheral zones are emerging as more viable options for middle-income families seeking housing. Meanwhile, stable interest rates provide some relief, though any future hikes could intensify cost burdens. For now, homebuyers must chart a market where aspirational living and financial realities are increasingly at odds, making strategic choices more critical than ever.

India Unleashes Banks On $40B M&A Market: India’s central bank will now allow domestic lenders to fund mergers and acquisitions, unlocking the $40 billion M&A market. The move aims to boost liquidity, support mid-sized firms, reduce reliance on foreign capital, and strengthen local banks’ role in corporate deal-making, potentially reshaping India’s private sector growth trajectory.

RBI Lifts ₹10,000 Crore Loan Cap For Corporates: The Reserve Bank of India (RBI) has announced the removal of the ₹10,000 crore ceiling on bank loans to corporates. This move is expected to enhance banks' lending capacity and facilitate larger investments in key sectors. The decision aims to support economic growth by providing businesses with greater access to credit. Hope someone’s monitoring credit quality and financial stability.

RBI Holds Rates At 5.5%: The Reserve Bank of India (RBI) has maintained its benchmark interest rate at 5.5%, aligning with market expectations. This decision reflects a cooling inflation rate, signaling that price pressures are subsiding. The RBI's stance aims to support economic growth while ensuring price stability. 

IPO Frenzy Turns Sour But LG Electronics Presses On: India's IPO market has been bustling, with over 80 companies raising nearly ₹35,000 crore in the past two months. However, investor returns have been underwhelming, with the average gain at just 7%. Unfazed by this trend however, LG Electronics plans to list its Indian unit with an ₹11,628 crore IPO, aiming for a valuation of ₹86,000 crore. The IPO opens on October 7, offering a 15% stake. Despite market volatility, LG's move underscores confidence in India's manufacturing sector.

Perplexity AI Bets Big On India: India has emerged as Perplexity AI’s largest user base, driving the company to plan a local investment fund and establish a dedicated team in the country. Co-founded by IIT Madras alumnus Aravind Srinivas, Perplexity’s growth was fueled by a strategic partnership with Airtel, resulting in rapid adoption and strong user retention. Srinivas sees India as pivotal to the company’s expansion and aims to encourage Indian founders to build globally competitive tech companies. 

India In Russia’s Arctic Ambitions: Russia is seeking India’s entry into the Arctic Council to bolster cooperation on the Northern Sea Route, a faster Eurasia–Asia shipping corridor. With its Himadri research station and expertise in Arctic science, India could gain strategic influence, access critical resources, and strengthen its geopolitical and economic footprint in the polar region.

Zerodha, From Zero To Maybe? India’s top discount broker Zerodha is for the first time reconsidering its zero-brokerage model following a dip in revenue in FY25 and Q1 FY26, alongside SEBI’s new F&O rules. This could reshape retail trading habits, signal a revenue-focused pivot, and mark the end of nearly free trades for millions of investors.

India: The Bright Spot For Bvlgari: Bvlgari expects record sales in India in 2025 despite a tough global luxury market. CEO Jean-Christophe Babin credits India-focused designs and celebrity tie-ups, including Priyanka Chopra’s Kada and Mangalsutra, for driving demand. The brand plans three new stores next year and continues “Indianizing” its offerings to appeal to local consumers.

Tata Group Faces $75B Market Shock: Tata Group has experienced a significant decline in market capitalization, losing over $75 billion this year. This downturn is attributed to various factors, including tightened U.S. work visa regulations impacting Tata Consultancy Services (TCS), a cyberattack affecting Jaguar Land Rover's production, and broader market volatility.