SEEPZ was set up on 1st May, 1973 as uni- product EPZ exclusively for manufacture and export of electronic items in an area of 100 acres of land leased through the Maharashtra Industrial Development Corporation (MIDC), Andheri(East), which over the years has become a land mark of Mumbai. The objective was of (a) accelerating the progress of electronics manufacturing in India (presumably encompassing the technology transfer objective) and (b) to take advantage of the growing electronics world market (export and foreign exchange objective).

Considering the high potential and the pollution-free nature of Gem & Jewellery Industry, the Govt. of India decided to permit manufacture and export of Gem & Jewellery items from SEEPZ during 1987-88, which soon gave a glamorous twist to SEEPZ.

In 2000, Government of India decided to set up new Special Economic Zone/ convert some of the existing Export Processing Zones to Special Economic Zones. SEEPZ was one of the three Export Processing Zones converted as Special Economic Zone w.e.f. 1st November, 2000.

The Government of India enacted the Special Economic Zones Act, 2005 on 23rd June, 2005. Subsequently, the Special Economic Zones Rules, 2006 were notified on 10th February, 2006. The approval for establishment of SEZ is granted by the Board of Approvals (BOA) in the Ministry of Commerce & Industry. The SEZs located in the State of Maharashtra, Goa and Union Territory of Dadra, N. Haveli, Daman & Diu are under the jurisdiction of the Development Commissioner, SEEPZ SEZ.