Mounjaro, the newly launched weight-loss and diabetes drug developed by Eli Lilly, has made its way to India. Touted as more effective than Ozempic and available at a lower cost, the drug’s introduction raises critical questions about its impact on consumer behavior, insurance, and long-term health trends. With India home to the highest number of diabetics and a rapidly increasing obesity rate, could Mounjaro be a game-changer for the country’s economy and stock markets?
Economic Ripple Effects: ‘People Will Trade Less’
Zerodha co-founder Nithin Kamath believes that widespread adoption of weight-loss drugs like Mounjaro could trigger significant economic shifts. “People will eat less, smoke less, buy less, and live longer. They’ll also trade less? Insurance premiums will need to adjust, and annuity payouts in pensions will have to be recalculated,” Kamath noted, highlighting the far-reaching consequences.
Retailers in the U.S. are already seeing changes in consumer spending. Walmart reported a decline in grocery sales linked to the rise of weight-loss drugs such as Ozempic and Mounjaro. If similar trends emerge in India, industries ranging from food and beverage to fashion and healthcare may feel the impact.
The Science Behind Mounjaro
Mounjaro belongs to a class of drugs known as GLP-1 receptor agonists but stands out by also targeting GIP receptors. This dual action enhances blood sugar regulation and suppresses appetite, leading users to feel fuller for longer and consume less food.
Preliminary research suggests additional benefits, including reduced cravings for alcohol, nicotine, and compulsive shopping. Some studies even point to potential improvements in cardiovascular health, reduced dementia risk, and enhanced mental well-being. Kamath commented, “Even if half of what’s being reported is true, this could be the closest thing to a miracle drug.”
Affordability and Market Penetration in India
Despite being priced lower in India than in the U.S., where it costs thousands of dollars annually, Mounjaro remains expensive for the average Indian consumer. The drug costs ₹3,500 for a 2.5 mg vial and ₹4,375 for a 5 mg dose, translating to an annual expense exceeding ₹2 lakh for regular users—far from affordable in a country where out-of-pocket healthcare costs remain a burden.
However, with patents on key ingredients expiring in 2026, the emergence of generic alternatives could drive prices down, making the drug more accessible to a broader population.
The Catch: What Happens When You Stop?
One significant drawback of Mounjaro is that its weight-loss benefits are not permanent. According to Dr. Vanita Rahman of the Physicians Committee for Responsible Medicine, many users regain lost weight after discontinuing the drug.
“This is because these medications do not address underlying issues such as poor diet, emotional eating, or food environments that encourage overconsumption,” she explained.
A study published in JAMA found that nearly two-thirds of GLP-1 drug users stop taking them within a year, often due to cost or side effects. Another study from the University of Glasgow and the University of Texas found that users who stopped the medication regained most of their lost weight.
Concerns Over Overprescription and Side Effects
The rapid rise in popularity of weight-loss drugs has led to concerns about overprescription and potential misuse.
“There is a risk of these drugs being overprescribed, especially since their long-term effects are still not fully understood,” warned Dr. Sukhvinder Singh Saggu, Director of Bariatric Surgery at CK Birla Hospital, Delhi. “Prescribing should be based on evidence and tailored to individual patients rather than applied as a one-size-fits-all approach.”
Mounjaro, like other GLP-1 drugs, comes with potential side effects, including nausea, vomiting, diarrhea, constipation, and stomach pain. Some reports even suggest a possible link between these medications and vision loss, with nine cases in the U.S. raising concerns over irreversible blindness.
The Bigger Picture: Lifestyle Still Matters
While Mounjaro offers a promising solution for weight management, medical experts emphasize that sustainable weight loss requires more than medication.
“Lifestyle changes—such as a balanced diet, regular exercise, stress management, and quality sleep—remain the most effective long-term strategies,” Dr. Rahman noted. “Unlike medications, which provide temporary effects, lifestyle modifications help create lasting habits.”
India’s GLP-1 Moment: Ready or Not?
India may have entered the GLP-1 market later than other countries, but this delay offers an opportunity to learn from global trends. Regulators, businesses, and consumers now have a chance to prepare for the economic and social shifts that these drugs may bring.
As weight-loss medications become mainstream, the big question remains: Are we witnessing a long-term health revolution, or is this just another expensive trend? Only time will tell.
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