This paper is based on the premises of economic development through the creation of economic enclaves across the region-seeking industrialization in the context of India. The study suggests that Special Economic Zones policy has attracted a considerable amount of export-oriented investment and production, employment creation, and technical know-how. However, the policy has not met the desired results considering the objective of economic development. Assessment leads to understanding that competitiveness of domestic firms and linkages with foreign affiliates can be strengthened by the adoption of institutional re-structuring to create the conducive environment for further industrialization. It may lead to related spillovers to have positive impacts on the overall economy.