The United States is pressing India to open 125 billion dollars in the e -commerce market to Amazon, Wall Mart: FT report

The Trump administration is currently negotiating with India to open the e -commerce market worth $ 125 billion to American companies such as Amazon Wall Mart, according to the Financial Times on Tuesday that the executives in industry, pressure groups and US government officials. The move comes amid continuous discussions of the trade agreement for the United States and India, which, if not resolved, can lead to a 26 percent tariff on Indian exports to the United States.

US Vice President JD Vance and Prime Minister Narendra Modi recently acknowledged the progress of these negotiations, which aims to expand bilateral cooperation in multiple sectors, including energy and defense.

In discussions, American e -commerce giants pressed to remove the current restrictions that limit their operations to work only as online markets. They are competing for an equal stadium against Indian competitors such as Mukesh Ambani’s Reliace Group, the largest retail store in India.

Relination is a huge competitor, as it can produce goods, ownership and sell them through their platforms. The American administration considers these e -commerce restrictions as “unbearable barriers”, and they are similar to the limits of foreign investment in retail.

The possible consequences of not reaching an important commercial agreement. Without a decision, a 26 percent tariff is expected to be suspended from Indian exports to the United States, although this may temporarily stop for 90 days by President Trump to allow negotiations. Meanwhile, Amazon Wall Mart, who owns Indian retail stores, Velkkart, is defending these barriers.

The inspector in the industry noted that the Trump administration is working closely with American e -commerce platforms during these discussions. The attempt to pressure India to open the e -commerce sector reflect a wider scale for American giants such as Amazon and Walmart a wider pattern of economic diplomacy that aims to secure market domination of its companies.

Some voices in India express their concern about the impact of this openness to local companies. Khandelwal added that foreign investment is welcome, it should not come at the expense of distorting the environmental system for sale in India or undermining the interests of its young merchants. India has a network of 90 million small merchants.

Since entering the Indian market in 2013, Amazon has been playing with a knee with Flipkart, and is behind the daily active users. The broader American strategy for opening the e -commerce market in India has continued since 2006, despite many challenges.
As discussions continue, the result remains a pivotal not only for the e -commerce sector but also for American trade relations and wider India.