Born in Delhi, India, he immigrated to the United States when he was eight, and grew up in Edison, New Jersey. Sharma studied at Princeton University, where he earned his B.A. in public policy at the Woodrow Wilson School. While there, he also studied under a succession of notable writers, including Russell Banks, Toni Morrison, Joyce Carol Oates, Paul Auster, John McPhee, and Tony Kushner. He then won a Stegner Fellowship to the writing program at Stanford, where he won several O. Henry Prizes. He then attempted to become a screenwriter, but, disappointed with his fortunes, left to attend Harvard Law School.