Lord Paul also said "the prime minister is in a difficult situation in managing coalition partners and given the present economic condition of the world.
"Any country which has a coalition, especially of the variety what we have in India, it is almost a governing anarchy in my view," he said.
Asked about his views on Gujarat chief minister Narendra Modi, widely perceived as BJP's prime ministerial candidate, on occupying the seat in 2014 Lok Sabha polls, he said "Unless one sits on the chair, it is difficult to judge and cannot say whether he will be successful.
"He is running Gujarat successfully and there is no doubt. He has been elected for three terms in a row. The state has progressed well. He has just got elected. I hope he should get a chance. Rest of the job is with the electorate to elect, not yours or mine."