The survey says, ``Scaling down of peak import duty and import tariffs on a wide range of inputs, intermediates and capital goods is likely to strengthen the competitive environment and yield productivity gains in the future.''

The survey's recommendation is in consonance with the recent decline in the exchnage rate of the rupee, which has increased protection to domestic producers. Industries across the board have been clamouring for greater protection through raising of custom duties as easy imports of foreign goods have hit their bottomlines. Industry has also alleged dumping in several sectors by foreign companies. It feels the pinch as over capacities have got created in several sectors over the last five years.