Special Economic Zones (SEZs) concept has evolved across the globe and developing countries have adopted this policy for setup of industrial zones that focus on exports and helps in generating economic opportunities and able to attract foreign direct investment. India was one of the first in Asia to recognize the effectiveness of the Export Processing Zone (EPZ) model in promoting exports with Asia’s first EPZ setup in Kandla in 1965. With a view to overcome the shortcoming experienced on account of the multiplicity of controls and clearances; absence of world –class infrastructure, and unstable fiscal regime and with a view to attract larger foreign investment in India, the Special Economic Zones (SEZs) policy announced in April 2000. This policy intended to make SEZs an engine for economic growth supported by quality infrastructure complemented by an attractive fiscal package, both at the center and state level, with the minimum possible regulation for economic development. The present study is an attempt to throw light on performance of SEZs in India and its achievement. SEZ is new technique for expansion of both industrialization and employment.