This paper looks at the impact of trade liberalization on output, factor intensity and labor productivity of micro enterprises with differential access to banks. I use Indian data on micro enterprises employing less than ten workers in the manufacturing sector to find that trade liberalization, measured by a fall in the tariff, is associated with higher enterprise output, capital-labor ratio and labor productivity in districts with a large number of bank branches per capita. Evidence is consistent with strong complementarities between trade liberalization effects and better access to credit and greater economic activity and prospects due to greater bank presence in the enterprise’s location. In addition, I find greater likelihood of outsourcing of production activity to micro enterprises in more open industries. I thereby also highlight the role of linkages between micro enterprises and large firms in improving the competitiveness of the manufacturing sector in developing countries under globalization.