The demand comes after the Central Board of Excise and Customs in the Finance Ministry slashed duty drawback rates on several items, including textiles, metal items, leather and sports goods.
The Federation of Indian Export Organisations (FIEO) in a communication to Finance Minister Pranab Mukherjee requested the government for two per cent increase in duty drawback.
"The world trade is again witnessing rough weather and the global growth rate is likely to decline in the second half of 2010," FIEO President A Sakthivel said.
The reduction in rates has come as a "bolt out of the blue" for export sector particularly those which are still showing negative or single digit growth, he said.
FIEO has also said the cut in rates would impact both exports and jobs in the country.
Although, the country's exports have risen by 28.6 per cent between April-August this fiscal, certain segments like garments, handicrafts, handloom and carpets, are yet to pick up from the setback received during the global downturn of 2008-09.
