FDI in retail sector allows foreign companies to directly invest in Indian retail businesses. While FDI in India has increased substantially in recent years, government approval of FDI in multi-brand and single-brand retail has been controversial. Supporters argue it will create jobs, improve infrastructure and benefit farmers and consumers. Critics argue it will displace small retailers and local wholesalers, and foreign companies may not source goods locally. There are positives and negatives to consider regarding the impact of FDI in India's retail sector.