Trump turns up heat on India over $125 billion e-commerce market access

The Trump administration is ramping up pressure on India to grant greater access to its $125 billion e-commerce sector for American companies like Amazon and Walmart.

The push comes as part of broader trade negotiations between the two countries, taking place under the looming threat of a 26 per cent tariff on Indian exports to the US—a measure President Trump has temporarily suspended for 90 days, Caliber.Az reports via foreign media.

According to US officials and industry insiders, Washington is urging Prime Minister Narendra Modi’s government to level the playing field for foreign e-commerce firms, which currently face significant operational restrictions. India permits companies like Amazon and Walmart to act only as online marketplaces, prohibiting them from selling their own inventory. In contrast, domestic players such as Reliance can manufacture, own, and sell products directly through their platforms.

During a meeting in New Delhi, US Vice President JD Vance and Modi “welcomed the significant progress” in trade talks and expressed hope for deeper cooperation in areas such as energy, defence, and technology, according to an Indian government statement. Walmart CEO Doug McMillon, who owns a majority stake in Indian e-commerce leader Flipkart, reportedly raised concerns about India's restrictive policies during a prior meeting with Trump at Mar-a-Lago. 

These restrictions have drawn criticism from US officials as “non-tariff barriers.” Industry sources say the Trump administration is closely coordinating with major US e-commerce firms as it seeks to reshape trade terms. Meanwhile, critics in India warn that opening the market could harm the nation’s 90 million small traders.

“While foreign investment is welcome, it must not come at the cost of distorting India’s retail ecosystem,” said Praveen Khandelwal, a BJP MP and trade association leader. Despite its efforts, Amazon still trails Flipkart in daily active users in India.

By Naila Huseynova