"We are missing out opportunities because of our timidity, due to fear of unknown....because of procedures," he said presenting the All Indian Management Association awards here, but did not elaborate.
Indian businesses have been expanding overseas, but the last two years have seen no major deals due to the economic crisis.
Chidambaram said success could be achieved by breaking the rules.
On hurdles being confronted by business and financial organisations from different quarters, Chidambaram said: "We are not letting them grow and as a result we are missing huge opportunities".
Referring to State Bank of India, the country's largest lender, he said despite such a success the public sector bank was not big enough to play a significant role globally.
"SBI will have Rs 50,00,000 crore business by March 2010. But that is not big enough. I think we are not letting them consolidate...," he said, referring to opposition by employees to merging SBI's associate banks with itself.
SBI chairman O P Bhatt, Maruti Suzuki India Ltd chairman R C Bhargava and former SEBI chairman M Damodaran were among others who received the AIMA awards.