The government may announce more incentives for garments, engineering and leather exporters next week,

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as they are still battling with slump in global demand.

After reviewing different sectors, the Commerce and Industry Ministry has identified these sectors for extra handouts despite the country's overall exports turning positive since November 2009.

"We will (be) submitting the proposals for the Minister's clearance in the next 2-3 days... The minister may announce it next week," a senior commerce ministry official said.

The official added that readymade garments and electronics along with engineering and leather goods are still not doing well. Since the Finance Ministry has begun the process of stimulus withdrawal, the fresh incentives to the exporters would be provided from the Budget allocations of the Commerce Ministry during 2009-10.

Concessional credit to these sectors under focus product and focus market schemes could be provided besides other sops, the official said.

The ministry has been given an outlay of Rs 3,980 crore for 2010-11, against Rs 3,813 crore in the current fiscal.

Exports of Engineering goods during April-January FY'10, declined to USD 26.12 billion from USD 34.19 billion in the same period previous fiscal. Garment exports was down by about 13 per cent in January over the year-ago period.

India's overall exports during April-January 2009-10 had declined by 17.8 per cent over the year ago period.

The government has also extended the 2-per cent interest subsidy scheme for the next fiscal. It was to end on March 31, 2010. However, few sectors like leather and engineering goods have been removed from the list of eligible sectors.

Commerce and Industry Minister Anand Sharma is learnt to have impressed on Finance Minister Pranab Mukherjee recently for continuation of the interest subsidy for these sectors.

In January, the ministry, through its internal allocations had given benefits worth Rs 450-500 crore to promote exports of over 2,000 items, including to big markets of Japan and China.

After falling for 13 consecutive months since October 2008, India's exports turned positive in November 2009.