Amid controversy over the setting up of China-style special economic zones, India on Thursday said the government recognised SEZs as 'an useful tool' in furthering industrialisation but will implement the concept in its 'own way'.
"We recognise that SEZs are a useful tool for industrial development, especially in areas where infrastructure is lacking. Where infrastructure already exist, it is perhaps not necessary to create SEZs," Finance Minister P Chidambaram said after inaugurating the first full-fledged branch of Bank of India in Shenzhen.
The one-time fishing village of Shenzhen is the first SEZ in China. It was China's first major experiment with capitalism after late Chinese paramount leader Deng Xiaoping's landmark visit to the southern Guangdong province in 1986.
"Where infrastructure is not existent, a SEZ will be a useful instrument to attract investors to build the infrastructure, to take advantage of the concessions offered by the government and to industrialise that area," Chidambaram said.
"We recognise the validity of that principle and we are trying to implement it in our own way," the finance minister said.
The Shenzhen SEZ was originally established in 1979 due to its proximity to Hong Kong, then a prosperous British colony.
The SEZ was created to be an experimental ground of capitalism in "socialism with Chinese characteristics". The location was chosen to attract industrial investments from Hong Kong since the two places share the same language and culture, local officials said.