With the start of liberalization in 1991, Foreign Direct Investment (FDI) was limited to only a few sectors like manufacturing, infrastructure etc. But change in FDI policy of India in 2012, allowing investment in multi-brand retail stores, aviation sector and pension plan sectors, may bring revolutionary changes in these sectors. For companies in the consumer products and retail industry, the pace of change is breakneck, global volatility is guaranteed, and fierce competition comes at every turn. FDI acts as a major catalyst in the development of a country through up-gradation of technology, managerial skills and capabilities in various sectors. Rise in purchasing power, growing consumerism and brand proliferation has led to retail modernization in India. The growing Indian market has attracted a number of foreign retailers and domestic corporate to invest in this sector. FDI in the retail can expand markets by reducing transaction and transformation costs of business through adoption of advanced supply chain and benefit consumers and suppliers (farmers). Oppositions have raised concerns about employment losses, promotion of unhealthy competition among organized domestic retailers resulting in exit of small domestic retailers from the market and distortion of urban cultural development. The present paper focuses on the overview of the Indian retail sector along with the survey to understand and compare consumer shopping behaviours and the use of different retail channels in Chandigarh, Mohali and Panchkula (India).