Snowden, who is holed up in the transit lounge at Moscow airport, has sought asylum from 21 countries including India. His US passport has been revoked.
"Instead of honouring this hero as a whistleblower who has alerted us all to this massive violation of citizen's as well as the national rights of all countries, including India, our government has meekly capitulated to US pressure and refused asylum to Snowden with great alacrity," the AAP said.
The party also attacked External Affairs Minister Salman Khurshid for "justifying" the US government's global eavesdropping and surveillance programme, codenamed Prism.
"The thin veneer of justification offered that such massive surveillance was used to prevent terrorist attacks is absurd in the light of the fact that there is no single terrorist attack which has been shown to have been prevented by such surveillance," it said.