The United States is pushing for greater access for Amazon and Walmart in India’s booming $125 billion ecommerce sector as part of ongoing trade negotiations, according to a report by the Financial Times. With India’s ecommerce sector growing rapidly, the US government is advocating for a level playing field that would allow foreign retail giants to compete on equal terms with local players. This move comes after President Donald Trump had placed retaliatory tariffs, including a 26% import duty on Indian goods, on hold for 90 days in an effort to balance trade.
US Pushes for Equal Treatment in Indian Ecommerce Market
The US government is calling for fewer restrictions on foreign ecommerce companies in India, which currently enjoys more operational freedom for local firms. Specifically, India’s ecommerce policies, including limits on foreign direct investment and restrictions on platform ownership, are seen by Washington as significant barriers. While American companies like Amazon and Walmart are limited to operating as third-party marketplaces, their Indian competitors have the ability to manufacture and sell goods directly. This discrepancy has created a competitive disadvantage for foreign companies, prompting the US to request reforms in India’s ecommerce regulations to level the playing field.
Retail Industry Leaders Lobby for Change
Key retail executives, including Amazon’s Jeff Bezos and Walmart CEO Doug McMillon, are playing a crucial role in these negotiations. McMillon, whose company owns Flipkart, India’s largest ecommerce player, is said to have raised concerns about India’s ecommerce restrictions directly with President Trump. McMillon also attended a recent meeting at the White House, where discussions centered around tariffs and trade policies affecting the retail sector. Despite Amazon’s substantial expansion since its entry into India in 2013, it continues to lag behind Flipkart in terms of daily active users. According to Bank of America data, Amazon had less than 40 million daily users by the end of last year, while Flipkart had 50 million.
Progress in US-India Trade Talks
On the diplomatic front, US Vice President JD Vance, during his first official visit to India, met Prime Minister Narendra Modi in New Delhi to discuss the ongoing trade negotiations. Both countries aim to increase bilateral trade in goods and services to $500 billion, a goal more than double the current volume. India is also considering significant tariff reductions on more than half of its $41.8 billion imports from the US as part of the trade agreement. Finance Minister Nirmala Sitharaman, who is in the US for a five-day trip, expressed hopes that India and the US could “positively conclude” the first phase of the trade pact by autumn.
