Foreign direct investment (FDI) plays an important role in Indian economic growth dynamics. There are several examples of the benefits of FDI in India. FDI in the retail sector can expand markets by reducing transaction and transformation costs of business through adoption of advanced supply chain and benefit to the consumers and suppliers (farmers). The result is also net gains in employment at the aggregate level. Author has been given forth a few conceptual issues and analysis of qualitative information, data and stylized facts. Author takes following methods - Foreign direct investment in India, surveys retail sector growth forecasts in India, highlights components raised by opponents of liberalising FDI in retail trade, provides arguments in favour of allowing foreign competition in this sector, and outlines challenges for organised retail in India.