Finance Minister Pranab Mukherjee today described the downgrading of US credit rating as a grave situation but said India has the capacity to withstand the negative sentiments affecting the external world. Addresing an economic event in New Delhi this evening, he said the country will achieve an appreciable growth of above 8 per cent in the current fiscal as India's economic fundamentals are strong. He, however, said that soaring inflation is a major challenge, which may come in the way of sustaining our growth momentum. Indian economy is expected to grow above 8 per cent in the current fiscal at a time when the major economies of the world are projected to grow less than 4 per cent. Mukherjee also said that the government is not looking at introducing any dual price mechanism for diesel. He said country's stock markets have the capacity to withstand the pressure emanating from the world.