FDI in retail will only benefit India. If you are worried about small retailers being put out of work because of the walmart's target's and kmart's etc. It's already is being done by big bazaar, star bazaar etc.
Also remember this these big walmart's are not going to start shops everywhere. They have to make a profit, so they will stick to big metros and not worry about small towns.
In big metros small retailers are all ready out of work because of big bazaar etc.
Even with the FDI approval Walmart etc can't open so many shop that they can cover an entire metro. There will be still places they can't reach where small retailers will thrive.
This smaller retailers thrive because they give credit which Walmart can't do and will not do. So small retailers can still thrive.
Bringing these companies make everything transparent. These big foreign companies can keep an eye on Indian companies and vice versa.
If they corner the market and bring price up then put a law where government can regulate the price of basic commodities.
FDI will make Indian companies look at the balance sheet and make their own companies profitable. So we will not have collapses like the sulekha retail stores etc.
So FDI will benefit us the sooner we get it the better...