Retailing can be defined as the buying and selling of goods and services. It can also be defined as the timely delivery of goods and services demanded by consumers at prices that are competitive, affordable, and available under one roof. The current research work aspired to analyze the FDI in retail sector and its impact on the select macro-economic variables of both India and China. The study made a comparative analysis with respect to both the countries. The study observed that FDI plays a vital role in transforming developing countries into developed nations. The overall performance of select macro-economic variables in India, when compared to China, need to improve. New privileges in FDI will stabilize the market and the financial indicators in the future.

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