Unveiling the Annual Supplement to Foreign Trade Policy 2004-09, Commerce and Industry Minister Kamal Nath said the export target of 125 billion dollars for 2006-07 has been met and ambitious goals of achieving 160 billion dollars in 2007-08 and 200 billion dollars in 2008-09 have been set.

"We have factored in the appreciation of rupee which keeps on fluctuating. We have already requested Reserve Bank of India to provide concessional loans to exporters," he said.

Nath said the government would meet leading export promotion organisations next week to devise a strategy to deal with the rupee appreciation.

The slowdown of the US economy has also been taken into account, he said, adding it would not have a major impact on exports as country's trade basket was quite wide.

Nath announced extending the popular Duty Entitlement Passbook (DEPB) scheme till March 2008. He said a new scheme to replace the existing one would be finalised by then.

The annual policy review met some long-pending demands such as exempting all exports, including those of services, from service tax.

More items have been given tax sops. The benefit will also be available to exporters of coconut oil, soyabean oil, potato flakes, meals and flours, cardamom and food preparations like soups, pasta, sauces and bakery products.

Recognising Special Economic Zones as an engine of employment, investment and export growth, Nath announced that developers and co-developers of these zones would be now been titled to all duty exemption and remission schemes.