In a fast-evolving world of global trade, India is facing fresh pressure from Washington to open its booming e-commerce market — worth an estimated $125 billion — more fully to American giants like Amazon and Walmart, according to a recent report from the Financial Times.
Sources close to the matter — including industry insiders, lobbyists, and U.S. officials — told the FT that the Trump administration is preparing to lean on New Delhi to level the playing field for foreign companies as part of broader trade negotiations.
Currently, Amazon and Walmart operate in India through local subsidiaries. However, they’re limited by rules that prevent them from holding inventory or selling directly to consumers. Meanwhile, Indian conglomerates like Reliance enjoy more flexibility — including the ability to run massive brick-and-mortar retail chains and sell directly to millions of customers nationwide.
The call for fairer access is expected to be part of wide-ranging trade talks between the two nations, covering everything from agriculture to automobiles. While no specific demands have been disclosed publicly, the core message is clear: the U.S. wants its companies to have the same shot at Indian consumers as homegrown businesses do.
Amazon and Walmart have yet to respond to media inquiries, but the issue has become a focal point as India and the U.S. work toward a potential trade deal. That agreement is increasingly urgent, given that a 90-day pause on proposed U.S. tariffs — announced by President Trump on April 9 — offers a narrow window for diplomacy.
On Monday, U.S. Vice President JD Vance met with Indian Prime Minister Narendra Modi in what’s seen as a key moment in advancing this negotiation. As trade talks unfold, the future of online shopping in India — and the role of international players in shaping it — hangs in the balance.
