This paper explores the gender effects of trade liberalization by looking at changes in gender segregation by occupation and sectors in labor market of India. Trade can impact occupational gender segregation by increasing competition which increases the pressures on domestic and foreign employers in the economy to hire and employ different factors of production (here, specifically men and women) efficiently. The need to compete effectively in this increasingly competitive environment begins to override any gender based preference, making the employers amenable to employing cheaper labor and particularly women. The empirical estimation in this paper exploits the detailed repeated cross sectional data of India’s National Sample Survey Organization (NSSO) combined with Census of India data and trade data by UNCTAD. Results indicate that there was relatively more reduction in occupational gender segregation in those areas in urban India which saw greater trade liberalization. Also there comes about an increase in segregation of women into the informal sector of the labor market with greater trade liberalization. These results hold even after we control for human capital factors affecting gender based segregation, comprehensive district/region, industry and time fixed effects.