India is in a better position than other countries to manage the impact of an uncertain global economic situation following the developments in the United States and the euro zone, the finance minister said on Monday.

Pranab Mukherjee said India's fundamentals were strong and the growth story remained intact.

His comments helped the main stock index pare losses to 0.7 percent after sliding more than 3 percent in early trade.

Shares across Asia fell sharply despite efforts by global policymakers to stem a collapse in investor confidence after S&P downgraded U.S. credit rating from AAA to AA+ last week.