Britain sent India £279 million in 2014 alone - despite the fact the country has its own space programme and is planning to spend £10bn on a fleet of warships.
Plans are in place to give India a further £130million in "technical assistance" by 2018.
Mr Sinha has said the foreign aid deal is becoming a thing of the past and that Britain and India should find a way to move forward together.
He said: "While don't want to prejudge British aid that has been given, or will be given, easier access to British markets, easier movement of people and the transfer of technology are more important.
"We are grateful for any assistance we received in the past or will get in the future.
"But if it suddenly stopped would it make a huge difference? No.
"Did anyone in the Government of India ask for assistance? No.
“India has developed over the last 70 years in ways unimaginable to my parents’ generation.
"In the 1960s and 1970s we required a lot of assistance. We were importing food grains. Now we’re exporting.
“We have a shared history and very much in common.
“We have a very vibrant Indian diaspora of 1.5 million British citizens or dual origins who live here and contribute very meaningfully – 1.8 per cent of the population contributes around six per cent of UK GDP.
"We are very proud of this. India and the UK share a history, a strong foundation.”
Mr Sinha has said 'the sky's the limit' for British and Indian relations in future Mr Sinha is also optimistic that India firms like Tata, which employs 50,000 Britons across its steelworks, will remain in Britain after Brexit.
He continued: "I can’t speak for Tata and Britain hasn’t even begun negotiations yet.
"But I feel there will be some sort of relationship between the UK and the EU which Tata and most Indian companies are comfortable with.
"We are in exciting times. Our partnership has gone to a different level. I’m confident it will be a win-win situation for us both."
Chancellor Philip Hammond has said he will be meeting India's finance minister this month.
He said: "Prime Minister May has made it clear that her vision is of a global British economy and that is something we welcome.
"We see an important role for India in this.”