Trade openness has become an increasingly important global economic activity in the competitive world. At one hand a move towards trade liberalization has shown an extraordinary growth and integration in the world economy over last three decades, on the other hand several empirical studies reflect trade openness and FDI as magnifiers of environmental deterioration, especially in developing countries like India. This study aims to explore and examine the environmental quality of India and its association with trade liberalization and economic growth. Pooled regression technique was used to examine the data, which covers 30 years from 1991-2020. The findings suggest negative association between trade openness and environmental quality in India. We found that all types of pollution have a positive relationship with industrial output. The results of the study suggest that while trade openness measures have been pursued to promote economic growth in India but they have led to some potentially adverse environmental consequences. However, it is suggested that Indian government and policy makers should make an effort and formulate appropriate policies to improve environmental quality along with economic development which could help economy to achieve a clean environment and sustainable long-term development.

KEYWORDS: Trade Liberalization, Pollution, India, Environment, Manufacturing Industries.