New Delhi, March 18: While India integrates with the rest of the world through free trade agreements (FTAs), and successive budgets give a boost to the manufacturing sector, almost 20 key industrial products are up against an inverted customs duty structure.

According to a Ficci survey, such a levy negates the country’s competitive edge.

The chamber has underlined the need for early action on the recommendations of the Anwarul Hoda committee on inverted duty structure.

Inverted duty structure is an anomalous situation where the duty or tax on the finished product is lower than that on raw materials and intermediate products.

This is a disincentive to domestic manufacturers as they have to pay a higher price for the raw material in terms of duty, while the finished product is imported at a lower rate.

The study has expressed concern over products which come under the free trade agreements (FTAs) and regional trade agreements. These include consumer durable items such as colour TVs, colour picture tubes, air conditioners, refrigerators, electric fans and transmission assembly, auto components, and ceramic tiles.

The study said the initial duty reduction, called early harvest programme, under the India-Thailand Free Trade Agreement has affected the market for electronic goods, electrical equipment, colour picture tubes, auto components, ceramic tiles, electric fans and transmission assembly, non-ferrous metals like copper, paper, rice milling machinery, ceramic products, tyres and chemicals.