Shankar Sharma: Low Inflation Slashes Returns, India's Growth Story Faces Long Haul

• Investment expert Shankar Sharma warns India's economic slowdown is not short-term; growth acceleration by 2026 is premature.
• Low inflation, while a relief for consumers, weakens corporate pricing power, impacting margins and equity market returns.
• FPIs are withdrawing from India due to low dollar-denominated returns, estimated around 3% after tax and rupee depreciation.
• India's low relevance in global trade and domestic market focus contribute to rupee weakness and limited growth prospects.
• Sharma is bullish on Latin America, Europe, and China; suggests Budget 2026 needs major capex or capital gains tax cuts to revive the Indian market.

Why It Matters: Shankar Sharma predicts a prolonged economic slowdown for India, with low inflation and FPI exits impacting market returns.