This document analyzes the SWOT of allowing foreign direct investment in India's retail sector. Currently, FDI is allowed for cash and carry wholesale and single brand retail up to 100% with government approval. The government may now allow 51% FDI in multi-brand retail stores over 1 million people. This would organize the retail sector, increase competition, quality control and infrastructure development while bringing in foreign capital. However, political support and global economic conditions remain threats. Overall FDI could benefit India's retail sector which currently contributes significantly to GDP but is unorganized with low productivity.