The Trump Administration is pushing India to open its $125B e-commerce market to American e-commerce giants like Amazon and Walmart as part of a broader push for more favorable trade agreements between the US and India.
Good luck with that guys! Do they know anything about India? The country's government has been actively developing regulation aimed at preventing those exact companies from dominating e-commerce in India!
The Trump Administration is pressing Prime Minister Narendra Modi to provide a “level playing field” for e-commerce in the country, according to a Financial Times report, which did not specify the exact demands.
Amazon and Walmart currently operate in the country through local subsidiaries but are restricted from holding inventory and directly selling to consumers, as the country does not allow foreign-owned marketplaces to manufacture, own, or directly sell products themselves on their own platforms. Whereas Indian conglomerates such as Reliance, which operates JioMart and Tata, aren't subjected to the same restrictions.
The push comes after Vice President JD Vance met with Modi in New Delhi last week, which resulted in both parties acknowledging “significant progress in the negotiations for a mutually beneficial” trade agreement. India's exports to the US face a potential 26% tariff, although Trump has temporarily suspended this for 90 days to facilitate negotiations.
India's e-commerce regulation is designed to protect domestic businesses and prevent foreign giants from dominating retail through deep discounting and market share control by pushing their own products. Trump's negotiations will certainly test their convictions. Personally if I were India I'd say, “Don't like the rules? Go back to China.”