In this paper the author analyses India's new Industrial Policy and discusses its implicatation and consequences for export performance. According to his analysis, it emerges from the New Industrial Policy that the Indian Government is not yet ready to allow foreign investment. Exports are important only to the extent of relieving the Balance of Payment crisis. Growth in the international economy and export are to be mainly brought about by Indian businessmen. The strategy for the growth of the economy has not been spelt out. Since the New Industrial Policy has not adopted an export-led growth strategy and has a reserved approach to Foreign Direct Investment, it is doubtful if India's liberalization will ever achieve its grandiose aims.