India’s finance minister is optimistic the country can reach its nominal 10.5% economic growth target, and signalled growth took priority over the taxing of diesel vehicles during an interview at the end of last week.

“I would like to believe that we will achieve the target,” Nirmala Sitharaman told Business Standard. 

Nominal GDP growth declined to a 10-quarter low of 8% between April and June.

In addition, the minister said dealers stocking up passenger vehicles to cater to festival demand is an indicator for “activity and good buoyancy in the economy.” The festival season in the country usually gets underway at the end of this month.

India’s finance minister went on to add there was no obstacle to a majority stake sale of IDBI Bank, but it was solely a matter of timing, Business Recorder reports.

India is seeking to sell its 30.48% stake in IDBI Bank, whilst the state-run Life Insurance Corp (LIC) will sell a 30.24% shareholding. As it stands, India’s government and LIC own around a 95% stake in IDBI Bank.

Furthermore, earlier in the week, the country’s road transport minister, Nitin Gadkari, said he would propose an extra 10% tax on diesel vehicles, but he subsequently retracted his comments, saying India will have no such new tax.

In addition, when questioned about the 10% tax on diesel vehicles, Sitharaman stated: “I’m looking at an economy which has to grow.”

As part of another interview, the finance minister went on to add that around 22 countries were in talks and looking into bilateral trade with India in Rupees.