Foreign direct investment is that the best means of transferring business data from the developed to developing countries. FDI consists of not only technology defined within the typical sense of production processes for existing and new product, however also structure, managerial, marketing, distribution, procure and supply data and systems. The Indian retail trade is 5th largest within the world. Currently, quite 80th of the retail trade is targeted in giant metros. The unorganized and self-employed retail around ten million constitutes around 96 of the market. One ought to assess the execs and cons of FDI in marketing over succeeding 10to 20 years. This text focuses on a critical appraisal of the effectiveness of implementing FDI policy within the retail sector in India. There’s no denying that foreign capital can flow into the country and therefore the economic agenda of the govt is intact. However, the adverse implication felt over a protracted time in terms of job loss and displacement of little retailers and ancient offer chains. An oversized range of nations have expressed negative impacts on transnational retail chains. Therefore, it's vital to the policymakers to be told such experiences from past in India and alternative countries. The govt ought to adopt a cautious approach towards permitting FDI within the retail sector.