In the last decade, the Indian market has transformed dramatically. However, from the 1950s to the 1980s, investments in several industries were limited due to the low purchasing power in the hands of the consumer and government policies favoring the small-scale sector. Today we are using the services and products of multinationals. All credit goes to Dr. Manmohan Singh, prime minister, who started the LPG program in 1991. The Indian market is one of the largest markets with high purchasing power. India in 1997 allowed foreign direct investment (FDI) in cash and wholesale. Then it required government approval. The approval requirement was relaxed and automatic permit was granted in 2006. Between 2000 and 2010, Indian retail attracted about $ 1.8 billion in FDI, representing a very small 1.5% of total flow of Investment in India. There is a lot of work to be done in the field of logistics and supply chain management. It is not possible that the Indian government will only develop world-class infrastructures and other allied facilities because of a huge investment requirement. FDI in India has in many ways enabled India to achieve some degree of financial stability, growth and development. In order to create new and more jobs, FDI is the mantra of success now. The new step is taken again by Dr. Manmohan Singh in December 2012 allowing FDI in the retail sector 100% in single brand and 51% in multi brand business. This move will encourage large and organized foreign retailers such as Cash and Carry, Wal-Mart in India. This step will be a success story in India's economy. FDI is undoubtedly creating innovation in the retail sector, but at the same time it can topple the local and national retailers of India, which is undoubtedly a concern to worry about the government of India. In this research we have tried to reduce maximum ideas in place of FDI and to form a constructive vision about FDI.