"When the IMF model of economic reform has failed in the US, India should develop its own model on the basis of mass opinion. The government can not wash off its hands from bringing reform by just putting the blame on coalition politics," Joshi told reporters here.
Kaushik had said this week at the Carnegie Endowment for International Peace think tank in Washington, DC, that key reforms "including opening up its retail sector" would probably be put on hold as the government deals with resistance within its coalition.
Accusing the UPA government of derailing the country's economy at the behest of the World Bank and the International Monetary Fund, Joshi said it is "dangerous" to run the country's economy on the directions of the two agencies.
He said India should have its own model of economic development and the Centre should consult all the state governments before making economic policies.
Joshi also demanded roll back of excise duty hike on gold and non-branded jewellery, saying that this will encourage smuggling and 'inspector raj'.
He said he had taken up the issue with Finance Minister Pranab Mukherjee, who assured that it will be discussed when the Finance Bill will be taken up for debate in budget session, which will reconvene on April 24.