India's liberalization program of 1991 reduced trade barriers and removed investment restrictions across industries. Using a unique industry level dataset aggregated at the all-India level for all manufacturing industries, we compare the pre and post-liberalization periods to examine if India's domestic production and exports showed a greater increase in dirty industries relative to cleaner ones. We also examine whether there has been a greater inflow of FDI into pollution intensive sectors in the post-liberalization period. Our findings indicate that exports and FDI grew in the more polluting sectors relative to the less polluting sectors in the post-liberalization period.