US seeks equal ecomm access for Amazon, Walmart in trade talks with India

The Trump administration is pushing India to ease FDI and platform rules that limit foreign ecommerce firms like Amazon to marketplaces, while local players can sell directly and operate freely

The US government intends to press India to give retail giants Amazon and Walmart expanded access to its $125 billion ecommerce sector as part of ongoing trade negotiations, reported the Financial Times. The Donald Trump administration has been pushing for a 'more equitable environment' after the US President put his retaliatory tariffs— including a 26 per cent import duty on Indian products — on hold for 90 days.

 

Washington is lobbying for fewer restrictions on foreign ecommerce firms in India, advocating for equal treatment in a market where local players currently enjoy greater operational freedom. The US sees India’s ecommerce policies — particularly its restrictions on foreign direct investment and platform ownership — as key obstacles.

 

 

American companies are currently limited to operating as third-party marketplaces, while Indian rivals can produce and sell goods directly, the news report said. 

 

Top retail executives in play

 

Retail industry leaders, including Walmart CEO Doug McMillon and Amazon’s Jeff Bezos, are reportedly playing a central role in these discussions. McMillon, whose company owns Flipkart, is said to have raised concerns over India’s ecommerce restrictions directly with Trump during private meetings.

 

McMillon also attended a White House meeting on Monday alongside other retail executives to discuss tariff-related issues, the Financial Times reported.

 

Despite Amazon’s ongoing expansion since its 2013 entry into India, it continues to trail Flipkart in daily active users. Bank of America data showed Amazon had under 40 million daily users late last year, compared to Flipkart’s 50 million.

 

Moving towards BTA

 

On Monday, US Vice President JD Vance, who is on his first official visit to India, met Prime Minister Narendra Modi in New Delhi. After the meeting, the Centre released a statement, saying there is "significant progress" in finalising a trade agreement that would also touch on sectors like energy, defence, and technology. 

 

Both nations have set a goal to increase bilateral trade in goods and services to $500 billion — more than twice the existing volume. As part of the bilateral trade agreement, India is considering significant tariff reductions on over half of its $41.8 billion imports from the US.

 

On Monday, Finance Minister Nirmala Sitharaman, who is on a five-day trip to the US, said that India hopes to "positively conclude" the first part of a trade pact with the US by this autumn. She is also scheduled to meet the US Treasury Secretary Scott Bessent and is expected to speak to officials at the US Trade Representative's office.