The United States is turning up the heat on India, pressing the government to open up its booming $125 billion e-commerce market to major American players like Amazon and Walmart, according to a new report by the Financial Times. This move is part of wider trade negotiations between the two nations, with U.S. officials aiming for a more level playing field in the Indian retail space.
India’s current e-commerce regulations make it difficult for foreign-owned companies to fully participate in the market. While giants like Amazon and Walmart operate through local subsidiaries, they’re not allowed to hold inventory or sell directly to consumers. This puts them at a disadvantage compared to local competitors like Reliance Industries, which enjoys more flexibility in its operations—owning inventory, running physical stores, and leveraging its vast logistics network across India.
According to industry insiders and government sources cited by the Financial Times, the U.S. plans to use ongoing trade talks to address these restrictions. These negotiations aim to cover a range of sectors, from agriculture to automobiles, but e-commerce is emerging as a key battleground.
This pressure comes amid India’s attempt to avoid the reintroduction of U.S. tariffs. Earlier this month, President Donald Trump announced a 90-day freeze on planned tariff hikes for major trading partners, giving India a narrow window to finalize a trade deal. U.S. Vice President JD Vance recently met with Prime Minister Narendra Modi in Delhi to advance discussions.
Neither Amazon nor Walmart has issued an official statement yet in response to the U.S. administration’s push. However, this development could significantly reshape the future of digital retail in one of the world’s fastest-growing economies.
With India’s digital economy expanding rapidly and consumer demand rising, the outcome of these negotiations will be closely watched by global investors, Indian entrepreneurs, and everyday consumers alike. A favorable deal could unlock new opportunities for American e-commerce firms while challenging domestic players to compete in a more open environment.
