The Union Government may announce financial package for the textile exporters of the country. Textile sector is facing low demand due to global slow down and have suffered huge losses. Export declined by 12.32 per cent in October this year and stood at $12.8 billion as compared to $14.6 billion in the corresponding period last year.

Union Commerce Secretary, G. K. Pillai said that textile sector suffered from low demand in international market and the industry is likely to cut five-lakh jobs in the next five months leading to large scale unemployment.

Government is analyzing the data of survey containing the records of 800 companies to access job losses following ongoing financial crisis. Union government has also constituted a special committee to examine the impact of global slowdown on Indian economy under the chairmanship of Prime Minister Manmohan Singh.

The committee would decide the bailout package for export industry to compensate their losses following no orders from western countries. Government would also review its export target of $200 billion for 2008-09 in late December.

Government is also looking at the possibility of increasing liquidity in the market to provide funds to industry at cheap rates. The Reserve Bank of India may use its forex reserve to improve credit condition in the monetary system.