Retailing in India goes through evolutionary patterns from kirana store to super market. Initially retail was only restricted to un-organized sector, and after that it is carried forward and now it is growing organized sector such as supermarket, hypermarket, malls etc. This paper provides detailed information about the growth of organized retailing industry in India and various problems face by them. In India retail industry is going under a transition phase from unorganized to organized retail. Unorganized retail consist of kirana shops, general stores, corner shops in and around the locality, are traditional kind of shops which are being owned and operated by the single person on a small scale with very less operational cost. In India, organized retail sector is also flourishing. The mind set of people is changing and they are moving towards the organized retail outlets for shopping. These day in India organized retail industry is booming but still it is not reached to the desired growth when it is compared with the developed countries. There are so many major and minor challenges faced by the Indian organized retail outlets.