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23 Apr, 2025
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U.S. Pushes India for Full E-Commerce Access Amid Trade Talks
@Source: knnindia.co.in
New Delhi, Apr 22 (KNN) In ongoing trade negotiations, the United States is urging India to grant full market access to American e-commerce giants Amazon and Walmart. This move aims to address what the U.S. perceives as non-tariff barriers in India's USD 125 billion e-commerce sector. Currently, Indian regulations restrict foreign e-commerce firms to operating as online marketplaces, prohibiting them from holding inventory or selling directly to consumers. In contrast, domestic companies like Reliance Retail face fewer constraints, allowing them to manufacture, own, and sell products through their platforms. The U.S. considers these disparities as significant obstacles to fair trade. The push for greater access comes amid broader discussions on a U.S.-India trade agreement, encompassing sectors from agriculture to automobiles. U.S. officials, industry executives, and lobbyists have indicated plans to press Prime Minister Narendra Modi's administration for equal opportunities in the e-commerce space. Recent high-level meetings have underscored the importance of these negotiations. U.S. Vice President JD Vance met with Prime Minister Modi in New Delhi, acknowledging "significant progress" towards a mutually beneficial trade agreement. Additionally, Walmart CEO Doug McMillon addressed India's e-commerce restrictions during discussions with President Donald Trump at Mar-a-Lago. The U.S. has temporarily suspended a potential 26 per cent tariff on Indian exports for 90 days to facilitate these negotiations. This period is seen as a critical window to resolve outstanding trade issues and establish a more balanced e-commerce landscape. As discussions continue, the outcome will significantly impact the operations of foreign e-commerce players in India and shape the future of U.S.-India trade relations.
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