The Trump administration is preparing to press India for broader market access for American e-commerce giants, including Amazon and Walmart, as part of ongoing negotiations for a comprehensive U.S.-India trade agreement.
Citing industry executives, lobbyists, and U.S. government officials, the report said the United States will advocate for a level playing field for foreign online retailers in India’s $125 billion e-commerce market during wide-ranging trade discussions. The talks are also expected to span other key sectors such as agriculture and automotive.
Although the report did not specify the exact policy changes Washington intends to seek from New Delhi, the central issue appears to be restrictions faced by foreign firms operating in India’s online retail space.
Currently, Amazon and Walmart operate in India via local subsidiaries but are barred from holding inventory or selling directly to consumers—regulations that do not apply to domestic players such as Reliance Industries. Reliance is free to operate physical retail outlets and exploit its extensive supply chain and store network to dominate consumer access.
Both Amazon and Walmart declined to comment.
The e-commerce access issue is part of a broader trade dialogue between the two nations, as India works to finalize a deal aimed at preventing the imposition of U.S. tariffs. New Delhi has been striving to avoid trade penalties while deepening its economic ties with Washington.
U.S. Vice President JD Vance met with Indian Prime Minister Narendra Modi on Monday in a sign of the high-level engagement surrounding the deal. Indian officials remain optimistic that an agreement can be reached within the 90-day moratorium on tariff hikes announced by President Trump on April 9 for key trading partners.
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