The union government may announce a second financial package to boost the economic growth rate amid global slowdown. It was revealed by the Union Commerce and Industry Minister, Kamal Nath at the sidelines of a function, organized by the Spanish Institute of Foreign Trade.

He said that the new package would aim to help the employment-intensive sectors of Asia's third largest economy. Engineering and textile sectors would be paid special attention besides export sector. Exports declined by over 10 per cent in November as compared to the growth of over 30 per cent in the same month last year. Government may extend re-finance facility for the exporters in the proposed package.

The new package is likely to cover the Duty Drawback and Duty Entitlement Passbook Scheme (DEPB). Textile sector may get an additional subvention in interest rate on export credit.

While explaining the government's intentions, the union minister said, "We have to ensure that our domestic demand continues and government will be taking all steps. India is not heading for a recession. But there is a downturn."

The government has already taken many measures for labour intensive sectors like textiles, gem and jewellery, handicrafts and leather in the first Rs 30,000 crore economic stimulus package. It can also announce additional guarantee for export insurance, more respite under Terminal Excise Duty and Central Sales Tax.