"The government of the modern time needs to trust enterprises and then verify, and depart from the earlier practice of verify and then trust. We see that happening now in India and that is indeed an encouraging signal for businesses to grow," Sinha said.
He was speaking at the convocation of Lal Bahadur Shastri Institute of Management (LBSIM) on Friday.
Sinha, who was the Finance Minister in the Atal Bihari Vajpayee-led NDA government said post independence, successive governments did not encourage trade, but promoted lobbying.
The BJP leader said that to improve ease of doing business in the country, the central government will need the help of state governments.
Meanwhile, speaking to reporters on the sidelines of the event, Sinha said there is an urgent need to improve our primary education system.
Speaking at the same event, LBSIM Director Arya Kumar said manufacturing companies are now picking up students with higher packages because of the new government's policy with distinct shift in favour of 'Make in India' campaign.