India to develop SEZ in its own way: Chidambaram

PTI[ THURSDAY, MARCH 29, 2007 03:10:14 PM]

Shenzhen: Amid controversy over the setting up of China-style Special
Economic Zones (SEZ), India today 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," India's Finance Minister P Chidambaram said after inaugurating
the first full-fledged branch of Bank of India here.
The one-time fishing village of Shenzhen is the first the SEZ in China.
It was China's first major experiment with capitalism after late Chinese
paramount leader Deng Xiaoping 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.

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