Crude Price Drop Not Enough To Attract Foreign Investors To India: Quantum's Ajit Dayal

A decline in crude oil prices alone may not be enough to attract foreign investors back to India, according to Ajit Dayal, Founder of Quantum Advisors India. Speaking at NDTV Profit Ignite 2026, Dayal said India needs to create favourable conditions for foreign capital, with currency movements and taxation playing key roles in investment decisions.

Responding to a question on whether easing crude oil prices could change foreign institutional investor (FII) flows, Dayal noted that oil prices remained below $80 a barrel from September 2024 to February 2026. He said this showed that lower crude prices may not be sufficient on their own to draw foreign investment.

Dayal argued that attracting overseas capital ultimately depends on policy choices and whether India wants to encourage foreign investors. “The necessary condition to get foreign attention and foreign capital is to make a call, make a decision. Either you want to invite them or you don't need them. If you need them, you need to give them conditions to invest in India,” he said.  

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He said the country must provide suitable conditions for investment, identifying currency movements and taxation as key considerations. Other factors, he noted, remain linked to global developments and geopolitics, including events around the Strait of Hormuz.

"Crude oil is one of many, many smaller conditions. The one that's most visible is your currency and a taxation. The rest is all left to Strait of Hormuz and global geopolitics. This is under our control. It's for us to control it," he added.

Dayal also noted that the rupee remained relatively stable until March 2025, after which it began to depreciate. He pointed out that global pension funds and sovereign wealth funds manage around $100 trillion in assets, while rising interest rates can intensify competition among countries seeking foreign capital.