"The government is determined to protect the domestic industry and the forthcoming budget will contain measures for their protection," he said here at a conference of corporate managers and tax executives organised by FICCI.

"If some sections of the industry need some breathing time it is government's responsibility to provide this,'' he said adding the Centre could not be a mute spectator to see the Indian industry perish.

``We cannot afford to lose what we have built over the years with so much of investment in the country,'' he said adding the forthcoming budget would also witness a drastic reduction in the excise duty to three slabs. ``Indian industry must become competitive and we can give them the time to adjust, if they want,'' he said adding there was no question of reverting toprotectionism.

Sinha also expressed the government's determination to restructure the anti-dumping mechanism that was causing hardships to the Indian industry. The finance minister said the government would be coming out with simplified tax laws. ``Provisos such as notwithstanding or riders in the tax incentive defeats the purpose of the tax concession,'' he said.

Sinha said even the developed countries provided protection to their domestic industry through anti-dumping measures, but, the system in India was ``cumbersome''. ``Though we have clamped anti-dumping measures perhaps this is not enough,'' he said adding the international situation has become difficult. Even though the rates of products have been depreciated due to the general recession sometimes the goods were made available even at less than our cost price, he said adding that the suggestions of continuation of the special import duty would be borne in mind while presenting the budget for 1999-2000.

He said in line with prime minister'sviews on the budget, he had held pre-budget discussions with various interest groups including the economic editors and the media. Sinha said he had also held indepth consultations on the budget preparation with the state chief ministers and the council of central ministers to elicit their view points.

``I don't like to roll over what has been announced like in the previous budget,'' he said adding the government would bring in greater transparency in the budget making. Sinha indicated the economy was showing signs of revival and said efforts must be made to capitalise on it. "There is some confidence in the Indian system and we now have to wrest it," he said. Later Sinha told reporters that the targeted Rs 5,000 crore from public sector disinvestment during the current fiscal year would be met. "Is there any doubt about it?" he asked adding the targeted resources would be mopped up from disinvestment of public sector equities.

The finance minister said he would classify the excise duty into threecategories -- mean, merit and demerit -- for considering taxations in various sectors. "I hope I am not leaking any budget secrets for which I would be hauled up," he said amidst laughter. "I hope after the exercise of seeking the views of the various sections there will not be a repetition of last year," he said recalling he had to roll back on import duty and marginal increase in urea prices.

Sinha said a greater number of excise duty slabs could lead to problems from the officials who would have to decide on the individual cases to determine their slabs. He said the government was working on the postulates that greater transparency and simplified taxation would translate into higher revenues. The minister said the government will review the incidence of zero import duty on certain goods which had affected the Indian industry. "There is no reason why we should have zero duty on a whole host of tariffs'', he said adding the exemptions given to a particular product should not spill out to the other relatedproducts.

Sinha said he would be impressing upon the dignitaries at the forthcoming world economic summit at Davos the compulsion of the Indian government to safeguard the interest of the domestic industry even while gearing them up for international competition.

Sinha said there had been distortions in the custom duty structure where there have been higher duty for raw material than the finished goods. "There are sectors where these have created a great number of problems."