Sept 15 (Reuters) – Finance Minister Nirmala Sitharaman expressed optimism that India can meet this year’s nominal economic growth target of 10.5%, in an interview published on Friday, adding that there is a shift towards diesel cars. suggested that growth should be prioritized over taxation.
“I want to believe that we can achieve our goals,” Sitharaman told Business Standard. India’s financial year begins on April 1st. Nominal gross domestic product (GDP) growth in the June quarter fell to 8%, the lowest in 10 quarters.
The minister also said dealers stocking up on cars to meet festival demand was an indicator of “activity and strength of the economy”.
The festival season in India usually begins in late September.
He also said that there is nothing stopping him from selling a majority stake in IDBI Bank (IDBI.NS), but it is a matter of timing.
India is considering selling its 30.48% stake in IDBI Bank, while State Life Insurance Corporation (LIC) (LIFI.NS) plans to sell its 30.24% stake. Currently, the Government of India and LIC together own about 95% of IDBI Bank.
Earlier this week, India’s Road Transport Minister Nitin Gadakri had planned to propose an additional 10% tax on diesel cars, but he withdrew his remarks, saying India was not considering such a new tax.
Asked about the 10% tax on diesel cars, Sitharaman said: “I think the economy has to grow.”
In a separate interview, he said around 22 countries are negotiating and considering bilateral trade with India in rupees.
(This article has been reedited to add the word “nominal” in the heading, which was removed)
Reporting by Nikunj Ohri and Shivangi Acharya, written by Shilpa Jamkhandikar.Editing: Sudipto Ganguly and Simon Cameron Moore
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