Investing.com-- Donald Trump’s administration is pushing India to grant full access to its $125 billion e-commerce market to U.S. giants Amazon (NASDAQ:AMZN) and Walmart Inc (NYSE:WMT) as part of ongoing trade talks, the Financial Times reported on Tuesday, citing industry executives and U.S. officials.
Walmart owns Flipkart, India’s largest e-commerce platform.
Washington is seeking a level playing field for American e-retailers, challenging New Delhi’s restrictions that limit foreign firms to operating as marketplaces while domestic rivals such as Reliance Retail (NSE:RELI) can produce and sell their own goods, the FT report stated.
India permits US e-commerce companies to function solely as online platforms that facilitate sales by third-party sellers.
The issue is part of wider trade discussions that span food, automobiles, and technology, and come under the threat of 26% tariffs on Indian exports if no agreement is reached within 90 days, according to the report.
U.S. Vice President JD Vance met Indian Prime Minister Narendra Modi in New Delhi on Monday, with both sides noting progress on a “mutually beneficial” trade pact.
Walmart CEO Doug McMillon and Amazon CEO Jeff Bezos had both raised concerns about India’s e-commerce rules in recent meetings with President Trump and administration officials, the FT reported.
The negotiations position the U.S. retailers against Reliance’s Mukesh Ambani, whose dominance in Indian retail has complicated market access for foreign firms, the report added.