In 21^st century FDI is the most populous word than has deep impact on the working of an economy of any country. In India FDI also plays a vital role in upgrading various sectors of the economy. Focusing on the retail sector, it is one of the sectors which is growing with utmost speed and matching up all the new desires and wants of the growing population. Aiming to have 100% FDI in retail sector becomes a big decision for Indian Government. Retailing is such a business that majorly acts as a catalyst for generating revenue for the government with highest ease. Currently its retailing that is not only satisfying the need and desire or generating revenue for government but it has become major source of employment generation. Taking this into consideration paper focuses on retail trade and its relationship with FDI. The research also involves the SWOT analysis of FDI in retail business.