"It is beginning to happen especially with high-level dialogue between the two countries. The high-level dialogue always triggers more broad based interest in countries. This will start to happen," she said, replying to a question about prospects of Chinese investments in Indian stock markets which showed signs of bouncing back in recent months.

During the just concluded visit of Xi to India, China has committed to invest USD 20 billion in two industrial parks as well as in the modernisation of Indian Railways.

"In terms of India's growth story and the new set of economic growth parameters set out by the new government, the appetite for new investment is tremendous," she said.

"The kind of returns the Indian markets can offer is always on the upper quartile compared to most destinations in Asia. So it is a good diversification for Chinese investments to think about investments in India," she said.

About the prospects of big inflows of Foreign Direct Investment ( FDI) or FII investments into India, Chitra said, "among the big changes that have been brought in India is the new regulatory framework for foreign investors to invest in the Indian markets."

"Because of the foreign portfolio investor framework, access has become significantly simplified. Registration and KYC norms have become much easier," she said.