The meeting, chaired by Prime Minister Manmohan Singh, was also understood to have deliberated on the other major problem of handling huge inflow of foreign exchange into the country, official sources said.

Besides, the council while reviewing the economic growth during the current fiscal 2007-08 also discussed on other economic issues such as inflation and interest rates.

Dual problems

The meeting was attended by the Planning Commission Deputy Chairman Montek Singh Ahluwalia, Commerce & Industry Minister Kamal Nath and captains of Indian industry including Ratan Tata, Rahul Bajaj, Mukesh Ambani and Sunil Bharti Mittal, members of the council. Mr Kamal Nath told reporters “We are now facing dual problems of rupee appreciation and continuous dollar inflows. This is a problem not only for exports but also the entire industry.”

Earlier, speaking at a function Mr Kamal Nath said government was looking at measures to counter the impact of the rising rupee, particularly on labour-intensive sectors.

“Some of these measures can be taken after consultation with the state governments,” the commerce and industry minister further pointed out.