The United Progressive Alliance government will take all the steps, including announcing fresh stimulus packages, to stem job losses arising out of global downturn, commerce and industry minister Kamal Nath said on Tuesday.

"The government is committed to ensure whatever stimulus is needed to see that there is no loss of jobs in some sectors which are taking a hit," Nath told reporters in New Delhi.

On high cost of borrowing impeding the industrial growth, Nath said, "RBI is looking into it... my own view is that interest rates are very high; need to be reduced."

Sectors like steel and automobile, after slowing down in November, are on their way to recovery, he said.

External affairs minister Pranab Mukherjee, who also holds charge of the finance portfolio, minister of state for industry Ashwani Kumar and several secretaries of the key economic ministries have already indicated the government may unveil significant fiscal measures to stimulate the economy reeling under the global slowdown.

According to the government's own estimates, over 10 lakh (Rs 1 million) jobs have been lost since mid-September in exporting units and sectors like textile, automobile and leather.

However, Nath said there was a limit to the government intervention so far as the problems are arising from erosion of demand in the developed countries. "The government cannot resolve the global economic problem," he said.