Having been recognised the importance of industrial development; the Government has evolved various strategies to initiate an element of dynamism in the growth process so as to make the State a leading industrial destination in India. Development of avant-garde infrastructure is an essential pre-requisite for rapid industrialisation and the Government is trying to provide better industrial infrastructure in the form of Industrial Parks, Industrial Estates, Industrial Clusters, Development Areas/Plots, and Special Economic Zones. Some sort of customised and industry-specific policy measures that could endeavour in reaching its objectives through state-of-the-art industrial infrastructure, encouraging eco-friendly enterprises, strengthening the MSMEs, inculcating entrepreneurship development, enhancing skills, simplification of rules and procedures, etc. must be initiated with a clear cut vision, objectives, and strategy so as to transform the State into a world-class business hub. It is in the context, the paper attempts to explore the crux of cluster-based industrial development in Kerala in terms of the operation of industrial estates and special economic zones.