Indian economic fundamentals are "intact" even though the debt crisis in Europe and the slowdown in the United States are having an adverse impact on it, a senior official said Saturday.
"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," Indian Finance Minister Pranab Mukherjee said in his address to the National Development Council meeting.
However, as the country has become increasingly globalized, it means "when the world sneezes, India runs risk of catching a cold, " the minister added.
"Not surprisingly, the economic crisis in Europe and the slowdown in the U.S. are impacting us adversely," he said.
Indian economy expanded 8.5 percent in the last fiscal year ending March 2011. In the current fiscal, it is expected to moderate to a maximum of 8 percent.