"The time has come to question the centralised, unaccountable system. Decision making must shift from Delhi to the panchayat," Gandhi said, speaking on the last day of three-day introspection meet of the All India Congress Committee (AICC).
He said there is a "young and impatient India" which is now demanding "greater role" in decision making.
"Until we start to respect and empower people, we cannot change anything in this country... all are closed systems, designed for mediocrity, mediocrity dominates," he said.
Gandhi was Saturday named the Congress vice president, making him officially the number two in the party after his mother and Congress chief Sonia Gandhi.