Ruchir Sharma: Only A Weaker Dollar Will Revive Foreign Investment In India

Renowned investor and author Ruchir Sharma believes foreign investment will only return to India once the US dollar weakens. His comment comes at a time when India's stock markets have seen record FII outflows. In an interview with Business Today’s Executive Director Rahul Kanwal, Sharma explained that the primary factor hindering foreign capital inflows into India is the strength of the dollar. "The one variable that every investor in India should look at as to when foreign flows will start coming back into India is when the dollar turns," he said. "Until and unless the dollar starts to weaken, then that's when I think foreign investors will return." Sharma also pointed out that unless there is a significant change in US market fundamentals, foreign flows into emerging markets like India will remain weak.