New Delhi: Finance Minister Yashwant Sinha on March 13 asked the industry to develop a consensus and classify import items for faster implementation of 10-20 per cent custom duty regime.

"I ask you (industry chambers) to develop a consensus and come up with suggestions on what should come under the 10 per cent customs duty slab and what should come under 20 per cent slab by 2004-05," Sinha said at the post-budget meeting organised by ASSOCHAM.

Sinha, in his Budget, laid down the roadmap towards a lower 10 per cent import duty regime for raw materials and intermediate goods and 20 per cent for final products by 2004-05.

Although industry would have been happier if the customs duties were raised, he said, lowering of the customs duties would be beneficial in the long-run and would make the Indian industry more competitive.

"You (industry) will not be able to compete globally with high import duty. Some industry will face closure but reduction in customs would benefit the entire industrial sector," Sinha said.

He further said that Indian industry should be ashamed of being afraid of competition from a country like Bangladesh and should instead make China its role model.

On excise duties, he said most of the items have been brought under the 16 per cent CENVAT rate. The 32 per cent rate for 7-8 items would also be reduced gradually.

PTI