"Definitely, the defeat in Karnataka is a setback for the party," Gandhi told reporters at Fursatganj airport before winding up his day-long visit to Amethi.

He did not elaborate but his comments came as the party was in the process of deciding on a committee of leaders that will suggest ways and means to revitalise it.

The committee will present its report to party President Sonia Gandhi within 15 days of its formation.

The Congress Working Committee held a brain-storming session on Saturday to review the party's electoral performance in Karnataka, where BJP formed the government.

Congress spokesman Abhishek Manu Singhvi, meanwhile, refused to give credit to BJP for the electoral result, saying it had not emerged victorious but only the leading party.