Ruchir Sharma, Head Of Emerging Markets and Global Macro, Morgan Stanley Investment Management expects the rupee to depreciate to as low as Rs 70 against the dollar in the next 2-3 years.
Ruchir Sharma, Head Of Emerging Markets and Global Macro, Morgan Stanley Investment Management dismisses all the hoopla about Prime Minister Narendra Modi’s maiden visit to the United States.
While the first year of the Modi government should not be judged too soon, Sharma says it is the Budget next year that will be the make or break for the government.
“All the investment talks in US will be just that. Talks and slogans. But from a domestic policy perspective, the second year beginning with the Budget will be critical for the government,” he says.
On the road ahead, Sharma expects the rupee to depreciate to as low as Rs 70 against the dollar in the next 2-3 years. This, he says, will be beneficial for the economy.
“If we want to grow by 6 percent, exports will be critical especially at a time when the global economy is weak. Hence, we need a competitive rupee for manufacturing advantage,” he further adds.
Sharma also believes that the Sensex hitting a year-end high of 30000 is unlikely as the global economic environment is not conducive for the market rally.
Transcript to follow soon.