The United States is turning up the heat on India to fully open its massive $125 billion e-commerce market to giants like Amazon and Walmart, according to a report by the Financial Times. Citing industry insiders, lobbyists, and U.S. officials, the report says the Trump administration is making this a priority in its upcoming trade negotiations with India.
At the heart of the matter is a desire for what U.S. negotiators call a “level playing field.” Right now, American companies face strict rules that limit how they can operate in India — such as bans on holding inventory and directly selling to customers. Meanwhile, local players like Reliance have more freedom, including the ability to open physical stores and use their vast retail infrastructure to reach consumers across the country.
While Amazon and Walmart haven’t publicly commented yet, it’s clear that behind the scenes, pressure is mounting.
Trade talks between the two countries are already in motion, as India looks to avoid U.S. tariffs that could impact everything from food to cars. Monday saw another step forward, with U.S. Vice President JD Vance meeting Indian Prime Minister Narendra Modi. Both sides are working hard to finalize a trade agreement during the 90-day window President Trump recently announced for pausing tariff hikes on key trading partners.
It’s a high-stakes moment for both nations. For India, it’s about protecting its domestic businesses and preserving jobs. For the U.S., it’s about ensuring fair access for its companies in one of the world’s fastest-growing consumer markets.
The next few weeks will reveal whether compromise—or conflict—defines the future of U.S.-India e-commerce relations.
