Retail Is One of the Largest Sectors of the Economy and Has Undergone a Rapid Transformation Over the Past Decade, That Carry Great Potential For Attracting Fdi. Government of India Allowed Fdi In Different Sectors of the Economy. Foreign Direct Investment Is an Important Tool In the Economic Development of the Nation. Fdi Refers to the Capital Inflows from Abroad That Is Invested In Enhancing the Production Capacity of Economy. Contribution of Fdi Through Financial Resources, Technology and Innovative Techniques Helps to Raise the Overall Productivity of Diverse Sectors of Economy. Globalization and Liberalization Brought Lots of New Innovative Products to the World and Fdi Is One Among Them. the Issue of Opening Up of Retail Sector For Fdi Is One of the Most Controversial and Debated Issue In Recent Times. There Is Divided Opinion on the Impact of Fdi on Retail Sector In India. some Says That Fdi In Retail Sector In India Will Lead to Economic Growth and Creation of New Employment Opportunities. But the Other View Point Is That Mass Scale Job Loss Will Happen, Particularly In the Manufacturing Sector With the Entry of Big Mncs. the Objective of the Present Study Is to Provide a Skeleton on the Impact of Foreign Direct Investment on the Retail Sector.