Indian business leaders have said their government should copy China's special economic zones (SEZs) as a way of attracting more foreign investors.

Prashant Mehra, of the manufacturing conglomerate SRF, said: "Chinese SEZs should be a role model for us."

He told a Confederation of Indian Industry (CII) conference that China's 50 plus SEZs, which offered incentives such as 15% income tax instead of the usual 33% rate, had played a big role in attracting foreign investment.

"The special economic zone in Tianjin has such modern infrastructure that it has tempted the world's 300 biggest manufacturing and engineering giants to set up shop in China," Mr Mehra said.

"We really need to learn something from China when it comes to getting things done in speed and style," he added.

'Employer-friendly'

India's minister for commerce and industry, Rajiv Pratap Rudy, said at the conference that a lack of labour reforms had held India back from copying the Chinese zones.

"China's SEZs have been a success story in attracting foreign investment to a large extent because of their completely employer-friendly labour laws.

"In India a firm runs into a problem with laying off a thousand people," he said.

Observers have said that China's special economic zones will no longer have the same importance since the country entered the World Trade Organisation (WTO).

But Indian business leaders say Chinese SEZs will continue to offer advantages.

In the past 10 years India has attracted foreign direct investment of $23.7bn (�15.5bn), slightly more than China has attracted in just six months.