"You either oppose FTAs in principle or recognise the fact that duty rates would go down over a period of time. India has the highest duty rates. Lowering of general duty rates is the solution to creating arbitrage," Ahluwalia said at the FICCI annual general meeting in New Delhi.
He said that the industry should be clear whether it was opposed to FTAs or they were ready to accept the lowering of duty rates over a period of time.
On special economic zones, Ahluwalia said he favoured setting of special economic zones but was opposed to the idea of letting industries in SEZs supplying to domestic tariff areas.
He also said the government should further consider creating industry clusters or special auto parks to develop marketing, branding and infrastructure but he also pointed that setting up of SEZs would lead to development in pockets only and would not lead to general industrialisation.
On the creation of special industrial zones he said the issue should be discussed with the both the finance and commerce ministries and the primary push has to come the states with central assistance.
Rules should be evolved for flexible labour treatment in these zones. Regarding upgradation of ITIs he said government was keen on public-private partnership and the industry should specify if they would prefer to be part of the decision making process only or make investments also.
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