As New Delhi and Washington navigate the contours of a potential trade agreement, the United States is reportedly pressing India to provide full market access to American e-commerce giants Amazon and Walmart, according to a Financial Times report citing industry sources and U.S. officials.
The move comes as part of broader negotiations aimed at finalizing a U.S.-India trade deal that spans several sectors, including agriculture, automobiles, and digital commerce. Central to Washington’s demands is a push for a more level playing field in India’s booming $125 billion e-commerce market, where U.S. companies face regulatory constraints that local competitors are largely spared.
Currently, Amazon and Walmart operate in India through domestic subsidiaries but face restrictions that prevent them from holding inventory or selling products directly to consumers. Indian regulations prohibit foreign-owned online retailers from selling goods directly to buyers and instead require them to act as platforms for third-party sellers. In contrast, Indian firms like Reliance Retail face no such limitations and can fully integrate online and offline retail operations, giving them a distinct advantage in terms of reach and pricing.
The reported pressure from the U.S. comes at a sensitive time. India is keen to finalize a trade pact and avoid the specter of steep U.S. tariffs that were paused for 90 days starting April 9, giving both sides a narrow window to strike a deal. High-level engagement continues, with U.S. Vice President JD Vance meeting Prime Minister Narendra Modi on Monday, signaling Washington’s urgency in advancing the negotiations.
Neither Amazon nor Walmart has publicly commented on the reported lobbying efforts or the trade negotiations. However, industry insiders note that both companies view India as a critical growth market, especially as competition with local giants like Reliance intensifies.
While it’s unclear what concessions the U.S. is seeking specifically in the e-commerce domain, analysts suggest the outcome of the trade talks could have far-reaching implications for foreign digital retailers and the regulatory future of India’s online marketplace.