"The 2008 and 2011 crises have created some adverse impact, but that does not mean there is need for despondency and suffering," he told Assocham members on Sunday.
"As a finance minister, I assure you that we will not hesitate to take tough decisions at appropriate time," Mukherjee said referring to the euro-zone crisis that may have some adverse impact on the economy.
Mukherjee indicated that the government would take measures for fiscal consolidation to manage the high deficit created by the previous Rs 1,86,000 crore stimulus package to combat the global financial meltdown in 2008.
"I do not want a situation where sovereign debt is too high and fiscal deficit is unmanagable...so we have to come back to fiscal consolidation," Mukherjee said.
The fiscal deficit target of 4.6 percent will remain a challenge, he said.
Mukherjee said he was not sure as to how soon the euro-zone sovereign debt crisis would be over and it could adversely impact exports.
He said though FDI in the April-August period had doubled, there was some sort of uncertainty.
Mukherjee assured that the government was carrying out the reform process during the year to keep the economy on track.
He said that despite divergent views, the three bills -- PFRDA, Factory Bill and Banking Amendment Bill – were likely to be taken up this year.
"I believe by this time the Direct tax Code will also be cleared," Mukherjee said.
These measures might help India receive increased FDI flow, he added.
He assured that the budgetary provisions for banks' recapitalisation would be released within the current fiscal.
On inflation, Mukherjee said measures have been taken and if despite that if the rate of price rise remained in double digit, more measures would be taken.