Over the past 20 years, expanding urbanisation, rising consumer awareness, and the inflow of foreign direct investment (FDI) have all contributed to a drastic change in the retail scene in India. The dual effects of foreign direct investment (FDI) on organised retailers and the difficulties faced by unorganised retailers are examined in this study through an analysis of fifty-eight academic sources. Key patterns in consumer preferences, socioeconomic factors, and adaptive tactics used by traditional merchants are identified by the study. According to the findings, foreign direct investment (FDI) boosts employment, infrastructure development, and global competitiveness, but it also jeopardises the life of local shops who lack official financial backing and digital capabilities. The evaluation identifies new research gaps and urges inclusive policy frameworks to support India's retail industry's sustainable growth.