"The model of the present government is faulty," Jaitley said while addressing a session of the Confederation of India Industry (CII).
"The leader of the elected party must have the ability to take decisions. He should have the authority to over-rule. The leader must always have the last word," Jaitley said.
"If he can´t do that and has to listen to others, then it becomes a three-legged race," said the Leader of Opposition in Rajya Sabha.
Congress vice-president Rahul Gandhi earlier in the day addressed the industry for the first time at the CII plenary session.
He urged the industry to ensure that the poor in India are included in the country´s development journey since the poor, the corporates and the middle class are three essential components who have to stitch together a coalition if the country is to move forward and India´s inherent optimism has to be harboured.
Gandhi also brought out the obsolescence of the Indian education system where there is no proper training to make them employable and called for sweeping changes.
"The biggest danger is excluding the people. Excluding the poor, the middle class, the tribals, the minorities, the Dalits," Gandhi said.
"It is not good enough to raise the tide, we have to give them the basic infrastructure. The basic infrastructure is a rights based paradigm," said Gandhi.
Holding that women are not only building boats but also are the waves, he said: "We will have to carry the poor and the weak with us."
"It is dangerous to leave people behind. Inclusive growth is win, win. What India is thirsting now is a visionary partnership," said Gandhi who said the poor, middle class and business are three components and they have to go in a coalition.