Allowing FDI in multi brand retailing has recently generated tremendous euphoria for some and fear for others. It is based on the notion that it will open floodgates for foreign retailers to invest and will change the retail landscape forever in India. When India is the only country in the world where the top five business houses with market caps running into trillions are into retail business, this issue becomes much more interesting. Most retailers in other countries do not feature even in the top 10 large firms. Also the evidence of last 20 years of globalization by retailers shows that there is no such case of domination of foreign retailers wherever markets for global retailers have opened up. The Govt. of India was forced to put on hold FDI in multi-brand retail by several political parties. The problem arises whether opening up of FDI in multi-brand retail will create problems or provide opportunities for local retailers. Foreign direct investment in multi-brand retail will start a better integration of Indian economy into the global markets.