Basu said some countries have done well in investing in infrastructure which India failed to do.
"Some countries like China have heavily invested in infrastructure. But we have not done very well in that, of investing in infrastructure," he said.
The Planning Commission has targeted investment of $1 trillion in infrastructure sector during the 12th Five Year Plan (2012-17)
Basu, who served as chief economic advisor to government from December 2009 to July 2012, also said benefits of economic growth in the country are not reaching the masses.
"Although economic growth in India has been quite remarkable since 1991 but benefit of growth is not filtering down to the extent we wanted," he said.
The World Bank has projected India's growth of about 5.5% for this year and below 6% for 2013, Basu said. For 2014 and 2015, it has projected economic growth close to be about 7%.
Chief economic advisor Raghuram Rajan has said that India is likely to grow at 5.5-6% this fiscal.