India has continually sought to attract FDI from the world’s major investors. FDI has played a important role in development of Indian economy. India has today become a budding target for FDI. With high purchasing power of Indian men, India now offers more lucrative and profitable market for investors. Its growing economy and growth is becoming an eye treat for foreign companies to expand their business and operations overseas. FDI in India has in a lot of ways enabled India to achieve a certain degree of financial stability, growth and development. FDI no doubt is creating innovation in retail sector but simultaneously it may pull down the local and domestic retailers of India which is surely a concern to worry about for Indian government. In this research we have just tried to bring down maximum thoughts in lieu of FDI and form a constructive view over it.