"He (Arvind Kejriwal) has done certain good things. However, he also has to be reasonable to business," he told a news channel.
The remarks comes in the backdrop of Arvind Kejriwal's confrontation with power distribution companies in the National Capital Region over tariff and uninterrupted power supply.
Earlier this month, Arvind Kejriwal had accused BSES discoms of trying to "blackmail" the government by threatening power cuts pf up to 10 hours a day and warned them of strict action, including possible cancellation of licenses.
On Indian economy, Narayana Murthy said: "So far as the urban India is concerned, so far as majority of the economy is concerned there is considerable confusion in the minds of people."
The economy is not doing as well as it should, it is not growing as well as it should, he added.
"Even my own industry is certainly not doing as well as it could. We saw the results of one of our highly respected competitors yesterday and there was some concern there. We ourselves did not do as well as we wanted in Q3 (October-December period of 2013-14).
"So, overall I think there is considerable concern about our economy at least in so far as urban India is concerned," Narayana Murthy, who is the co-founder of India's second largest software services exporter, added.
On his expectations from the next government at the Centre, he said: "As somebody who is completely apolitical, all that I would say is that I want the next government to ensure that the friction to business is reduced very heavily. That more and more taxes are collected and those taxes are used efficiently."
General Elections are scheduled to take place this year.
The concern is that the friction to business is still not as low as a country in our position should have. he said. "In my own industry for example even now it is so difficult for our foreign visitors to visit us," he added.
"The visa on arrival is still not available for countries with whom we have the highest trading partnership. So, there are many other areas where I believe that friction to business is still very high, that has to be reduced," Narayana Murthy added.