Addressing the National Development Council (NDC) meeting here, he said "while there may be some moderation in growth in the current fiscal, the fundamentals of the economy are intact and the medium-term growth prospects remain buoyant".
However, Mukherjee said as the country has become increasingly globalised, it means that "when the world sneezes, India runs risk of catching a cold.
"Not surprisingly, the economic crisis in Europe and the slowdown in the US are impacting us adversely".
Indian economy, which recorded a growth rate of 8.5 per cent in 2010-11, is expected to moderate to about 8 per cent during the current fiscal. In the April-June period of 2011-12 the growth slipped to 7.7 per cent, slowest in six quarters.
Mukherjee further said that unlike in 2008-09, the government doesn't have an elbow room for economic stimulus as it committed towards fiscal consolidation.
In the Budget 2011-12 the government has envisaged a fiscal consolidation path and aims to bring down fiscal deficit to 4.6 per cent of GDP in the current fiscal.
"As Finance Minister, I stand committed to this path of fiscal consolidation," Mukherjee said adding "The quality of expenditure and its multiplier effect on growth must get our attention".
The Prime Minister, senior central cabinet ministers and most of the chief ministers are attending the NDC meet, which is considering the blueprint or Approach Paper for the 12th Five Year Plan (2012-17).