"Various sectors of the economy are doing well and the policies of the government have also helped. If you look at GDP figures, our growth rate is over 7.5 per cent.
"The IMF forecasts say that we are the fastest growing major economy in the world. So if you are talking about an economy which is large in size and which is also growing fast, then you can imagine there is lot of good opportunities available for the investors," Sinha said.
"The main index Sensex has given a compounded annual growth rate of over 15.5 per cent on a long term basis. We have a very diversified market," Sinha told CNBC channel here.
"All sectors of the economy are active. There are old technology sectors, new technology sectors, pharma, infrastructure... We have a very strong presence of portfolio investors from outside the country. The foreign investors are very important players," he said.
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The total market capitalisation of all listed companies in India today incidentally regained their Rs 100 lakh crore mark.
There are more than 8,700 foreign portfolio investors registered in India and the total asset under their custody currently stands at about Rs 23 lakh crore (nearly USD 350 billion).
So far in 2016, FPIs have made a net investment of about Rs 10,000 crore (over USD 1.5 billion).