This thesis examines at a micro-level the effect of foreign collaborations in India on trade and production. The data used is classified according to the Standard International Trade Classification (SITC). It is examined at both the one digit (sector) and the two digit (industry) levels. The results of the analysis are inconclusive. This is possibly due to the lack of availability of sufficient foreign collaborations data and the lack of sufficient disaggregation of data relating to domestic investment. With the availability of additional data on foreign collaborations and disaggregated data on domestic investment, it is hoped that this study would lead to stronger, more conclusive results under the adopted framework.