This paper quantifies the local economic effects of 147 Special Economic Zones (SEZs) that were established in India between 2005 and 2013. Combining census data on the universe of Indian firms with georeferenced data on SEZs, we find that SEZ establishment increased both employment and firm entry in SEZ-hosting municipalities and neighboring localities (up to a distance of 10km). We provide suggestive evidence that the observed increase reflects genuinely new economic activity rather than relocated activity from neighboring jurisdictions. We further show that employment gains are centered around male workers. Females, who are a particularly vulnerable group in the Indian labor market, hardly benefit. Many of the new jobs are, moreover, created by small and informal firms. Finally, we document that the impact of SEZs on spatial economic activity can hinge on zones’ industry denomination and development by a public or private developer.