Trump govt could press India to offer Amazon, Walmart’s Flipkart full entry to $125 bn e-comm market, ETCFO
In a renewed push for a ‘fast-paced’ reciprocal commerce settlement, the US could also be urgent India to totally open its $125 billion e-commerce market to American retail giants like Amazon and Walmart, based on a report by the Monetary Instances.
The talks are a part of a broader framework for India-US commerce deal that’s anticipated to cowl a number of sectors, together with meals and vehicles. On April 2, Trump had slapped India with a 26 per cent tariff, which, nevertheless, has been paused for 90 days.
The push from the US probably features a demand for a degree enjoying area in e-commerce. India’s present regulatory framework makes US e-commerce corporations act solely like a market the place different sellers checklist merchandise from toothpicks to drones for customers of the world’s most populous nation. Nonetheless, the principles are completely different for Indian rivals who can manufacture, personal and promote the merchandise on their on-line portals. Washington calls this a “non-tariff barrier” whereas India additionally caps overseas direct funding in retail.
“Since 2006, the US has been attempting to open up India’s home market, and has been stymied efficiently ever since,” FT quoted Arvind Singhal, chair of retail consulting agency Technopak Advisors.
This comes amid US Vice President JD Vance’s go to to India the place he met India’s Prime Minister Narendra Modi. India and the US have finalised the Phrases of Reference (TOR) for a possible commerce deal to information the forthcoming negotiations.
Business executives advised the FT that the Trump administration has been working carefully with US e-commerce platforms on the commerce technique.
Additionally Learn: Flipkart will get board’s nod to shift domicile to India
In accordance with the FT report, Walmart CEO Doug McMillon first raised this subject at Mar-a-Lago, throughout a gathering with Donald Trump. McMillon was additionally reportedly current on the White Home earlier to debate tariff-related issues.
The commerce subject has broader enterprise implications. Reliance, India’s largest retailer, is rising as a robust native competitor by means of its rising e-commerce platforms, bringing main US retailers like McMillon and Jeff Bezos into direct competitors with Mukesh Ambani.
Walmart owns India’s Flipkart, whereas Amazon continues to broaden its operations since coming into the market in 2013. Nonetheless, Amazon lags Flipkart in person base. Amazon had fewer than 4 crore every day lively customers in India late final yr, in comparison with Flipkart’s 5 crore, based on Financial institution of America analysts.
Notably, India’s ‘unfavourable market circumstances’ have additionally delayed Walmart-backed retailer’s IPO to late 2025 or early 2026. Within the newest, Flipkart has moved its domicile from Singapore to India to additional financial institution on tax advantages.
However for the US retailers, troubles aren’t restricted to only restricted entry to the market but additionally heavy crackdown by the Bureau of Indian Requirements on their warehouses for possessing non-certified merchandise.
“The try to strain India into opening its ecommerce sector wider for American giants like Amazon and Walmart displays a broader sample of financial diplomacy aimed toward securing market dominance for its companies,” mentioned Praveen Khandelwal, secretary-general of the Confederation of All India Merchants and a BJP MP.
“Whereas overseas funding is welcome, it should not come at the price of distorting India’s retail ecosystem or undermining the pursuits of its [nine crore] small merchants,” he added.
The US stays India’s largest buying and selling companion, and the 2 nations have expressed curiosity in doubling bilateral commerce of products and companies to $500 billion.
