Welcoming the series of tax sops unveiled by the government, Confederation of Indian Industry said on Thursday that the new measures would further enhance competitiveness of the economy and propel India into a higher growth orbit.

"These measures clearly reflect the strong political will of the Vajpayee government to drive reforms strongly," CII President Anand Mahindra said in Hyderabad on the sidelines of the 10th CII Partnership Summit.

The reduction in customs and excise duties across a host of sectors was indicative of the government's intention to keep reforms on track, reduce costs and enhance competitiveness of the Indian industry, he said.

"It shows the government's commitment to reforms. It also belies expectations that reforms will be put on back burner," Mahindra said.

The CII, he said, was delighted that most of the measures were in line with the recommendations made by it in a presentation to the finance ministry in Decemebr 2003.

The reduction in peak customs duty to 20 per cent and elimination of the 4 per cent Special Additional Duty would drive the economy towards greater competitiveness, efficiency and globalisation, the CII president said.