Replying to a question in Lok Sabha, Commerce Minister Kamal Nath said 20 lakh people may face unemployment if remedial measures were not taken.

He also announced the government was considering fresh sops for the export sector and a proposal to this regard may be placed before the Cabinet soon. "We are talking to the finance ministry and may announce some steps soon," he said.

On reasons for rupee appreciation, the minister said increase in flow of dollar and global decline in the value of the US currency were the main reasons.

Between October 2006 and October 2007, rupee has appreciated by 15 per cent against the US dollar, affecting many sectors, especially those which are employment generating, Nath said.

While there is has been overall growth in exports, the rate of growth has declined. However, in certain sector like textiles, leather, marine products and handicraft, there is a net decline in exports which has led to job losses, he said.

"While exact details are not available, it is estimated that unless remedial measures are taken, the total job losses could be as high as two million," Nath said.

Various steps have been taken to provide relief to the exporters to meet the adverse situation arising out of rupee appreciation and more sops are in the offing, he said.

The steps taken so far include enhancement of duty entitlement passbook scheme rates, enhancement of duty drawback rates, reduction of ECGC premia rates and service tax (refund/exemption) for exports in respect of ten services, among others.

"A proposal for further relief to arrest loss of jobs is under consideration of the government," he said.