- Trump administration seeks full access for Amazon and Walmart in India.
- Current Indian rules restrict foreign firms from direct online retail.
- Trade talks ongoing to avoid US tariffs and level the playing field.
The United States is urging India to remove regulatory barriers that prevent American e-commerce giants like Amazon and Walmart from fully operating in its $125 billion online retail market.
India’s restrictions are being viewed by the U.S. as non-tariff barriers that favor local corporations. The Trump administration has ramped up pressure on New Delhi. They have tied e-commerce reforms to broader trade negotiations covering sectors such as food, automobiles, and pharmaceuticals.
India Faces Growing US Pressure Over E-Commerce Barriers
The Trump administration is intensifying its push for a level playing field in India’s booming e-commerce sector. It cites unequal rules that hinder companies like Amazon and Walmart. These global retailers operate through Indian subsidiaries but face key restrictions that limit their ability to compete with domestic firms.
Indian policy currently prohibits foreign e-commerce firms from holding stock or directly selling to consumers. This model is designed to protect small traders and promote homegrown businesses. Critics, however, argue it stifles foreign investment and innovation.
Meanwhile, Indian conglomerates like Reliance are free to use both online and offline channels to sell their products directly. This has raised concerns in Washington about fairness and transparency in India’s regulatory landscape.
US Vice President JD Vance recently met Prime Minister Narendra Modi, underlining the urgency of concluding a trade deal within the 90-day tariff freeze window. Both countries stand to gain economically. However, India faces a tough balancing act between liberalization and local protection.
As India weighs reforms under US pressure, the outcome of these trade talks could reshape the future of foreign investment in the Indian digital economy and retail space.
“Trade must be free, fair, and reciprocal.” – Donald Trump
