FDI refers to investment from foreign companies in a host country either through acquiring a local company or establishing new operations. The current size of India's retail market is $28 billion and is expected to grow to $260 billion by 2020. Foreign investors are allowed to invest in most sectors in India but some require approval. Conditions for foreign retailers include at least 50% investment in infrastructure and only opening stores in cities with over 1 million people. While FDI can boost economic growth and jobs, it may also harm small businesses. The conclusion is that FDI in retail can significantly increase India's organized retail market and income if the government continues to support it.