WASHINGTON (Diya TV) — The Trump administration is pressing India to open its booming $125 billion e-commerce market to American retail giants Amazon and Walmart as part of ongoing trade negotiations, the Financial Times reported Tuesday, citing U.S. officials, industry executives, and lobbyists.
The talks, which aim to establish a broader U.S.-India trade agreement, cover industries ranging from food to automobiles. However, digital commerce has emerged as a key sticking point as Washington pushes for what it calls a “level playing field” for foreign e-commerce firms operating in India.
Under current Indian regulations, foreign online retailers like Amazon and Walmart are allowed to operate only as marketplaces for third-party sellers, barring them from holding inventory or selling directly to consumers. Domestic competitors, such as Mukesh Ambani’s Reliance Industries, face no such restrictions and can both manufacture and sell products through their extensive retail and e-commerce networks.
U.S. officials consider these rules, along with foreign direct investment caps, to be “non-tariff barriers” that tilt the market in favor of Indian companies, the Financial Times reported. Arvind Singhal, chairman of retail consultancy Technopak Advisors, told the publication, “Since 2006, the U.S. has been trying to open up India’s domestic market, and has been stymied successfully ever since.”
The issue has gained renewed urgency as India’s exports to the U.S. face the threat of a 26% tariff increase. President Donald Trump temporarily suspended the proposed tariffs for 90 days starting April 9 to create space for negotiations, according to the Financial Times. During this window, both sides hope to finalize a deal that could prevent the new levies and expand trade ties.
The push for improved access was also on the agenda during recent high-level meetings. U.S. Vice President JD Vance met Indian Prime Minister Narendra Modi in New Delhi on Monday, where both leaders acknowledged “significant progress in the negotiations for a mutually beneficial” agreement, according to Indian government statements. The two sides also reaffirmed their collaboration in energy, defense, and strategic technologies.
According to the Financial Times, Walmart CEO Doug McMillon raised concerns about India’s e-commerce policies during a private meeting at Trump’s Mar-a-Lago resort, while Amazon CEO Jeff Bezos has maintained close ties with the administration, attending Trump’s inauguration and other business forums.
Industry executives, speaking on condition of anonymity due to the sensitive nature of the talks, told the Financial Times that U.S. retailers have faced additional hurdles beyond inventory restrictions. They described repeated inspections by India’s Bureau of Indian Standards, which they say have slowed the ability of foreign firms to scale their operations in the country.
Amazon and Walmart, which entered India’s market through local subsidiaries—Amazon India and Flipkart, respectively—have not publicly commented on the current trade discussions, Reuters reported.
The negotiations come against the backdrop of Trump’s longstanding criticism of India’s trade practices. The president has frequently called India the “tariff king,” arguing that its policies disadvantage American businesses. Despite the friction, both governments have committed to boosting bilateral trade, with a shared goal of reaching $500 billion in goods and services—more than twice the current volume, according to the Financial Times.
The stakes are high for U.S. companies. With India projected to become one of the world’s largest consumer markets, American firms want fewer barriers and fairer competition as part of any future trade pact. For now, all eyes remain on whether Washington and New Delhi can bridge the gap before the tariff pause expires.
