The US Pressuring India to Grant Amazon and Walmart Complete Market Access

According to a media outlet, the administration of US President Donald Trump plans to pressure India to grant online retailers like Amazon and Walmart complete access to its $125 billion e-commerce sector.

The US intends to pressure Prime Minister Narendra Modi's administration for e-commerce fairness in extensive negotiations on a US-India trade deal that will include industries like food and automobiles. The Trump administration did not specify the measures it anticipates the Indian government to take.

How Amazon and Walmart Currently Operate in India?

Amazon and Walmart are able to operate in India through local units, but they are prohibited from directly selling to consumers and holding inventory. In contrast, Reliance, a domestic firm, is able to establish physical stores and leverage its extensive retail network to reach customers throughout the country. In an attempt to evade US tariffs, New Delhi is currently discussing a trade agreement with the US.

Officials in New Delhi want to finalise a trade agreement with the US under the 90-day halt on tariff hikes that Trump imposed on April 9 for major trading partners. Furthermore, US Vice President JD Vance also met with Indian Prime Minister Narendra Modi on 21 April for further discussions.

McMillon and Bezos Eyeing Big of Trump’s Administration

Doug McMillon of Walmart spoke at Mar-a-Lago on India's limitations on international e-commerce businesses. The US plan to increase retail access in India puts Bezos and McMillon in competition with Mukesh Ambani, the richest person in Asia. Ambani's Reliance Group controls Indian retail and runs a number of e-commerce sites.

The US has been attempting to open up India's home market since 2006 but has been effectively thwarted each time, according to Arvind Singhal, chair of the retail consultancy firm Technopak Advisors. Beyond stocking limits, US merchants have confronted recurrent Bureau of Indian Standards product inspections, according to industry officials.

During negotiations, the Trump administration closely coordinated with US e-commerce platforms, according to two industry executives who spoke to a media outlet. In the meantime, Trump has already called India the "tariff king" because of its protective measures. As India's biggest trading partner, both India and the US want to double their present amount of bilateral commerce in products and services to $500 billion.

The Confederation of All India Traders' secretary-general, Praveen Khandelwal, said that the effort to persuade India to allow American giants like Amazon and Walmart to expand its e-commerce industry is part of a larger trend of economic diplomacy meant to ensure market dominance for its companies.

He continued by saying that although foreign investment is good, it shouldn't come at the expense of weakening the interests of India's small traders or disrupting the country's retail ecology.