iarjbmIARJBMIARJBM2708-5147https://doi.org/10.47310/iarjbm.2025.v06i01.XXIssues, Challenges and Prospects for Retailing in India for Global CompetitivenessAbooBakarThe retail sector is India’s largest industry, contributing significantly to GDP and employment, and is currently undergoing rapid transformation with the rise of organized retailing. Although organized retail accounts for only 7% of the total market, it is projected to grow by 25–30% annually, reshaping consumer behavior and shopping formats. Foreign Direct Investment (FDI) has emerged as a critical factor in this growth trajectory, offering vast opportunities while simultaneously raising debates on its socio-economic impacts. A review of literature reveals two contrasting perspectives: while some studies emphasize the role of FDI in enhancing global competitiveness and accelerating growth, others highlight concerns regarding unemployment and negative effects on agrarian society. This study examines the current state of Indian retail, the scope of globalization, and the policy challenges and opportunities associated with FDI in the sector.