Amazon and Walmart may benefit from ongoing trade talks between India and the United States, as reported by the Financial Times on Tuesday. The US government is expected to ask India to open its $125 billion e-commerce market to American companies.

The report, quoting industry executives, lobbyists, and US officials, said that the Trump administration wants the Indian government to allow more freedom to foreign-owned e-commerce firms. This move is aimed at creating a "level playing field" for American companies like Amazon and Walmart, who currently face several restrictions in India.

At present, India does not allow foreign-owned online retailers to hold inventory or sell products directly to customers. However, Indian companies like Reliance are not bound by these rules. This gives domestic firms an advantage over global competitors in both online and offline retail businesses.

Trade talks between the two countries will cover many sectors, including food, automobiles, and digital trade. The e-commerce issue is expected to be an important part of the discussions.

The talks are taking place during a 90-day tariff truce announced by President Trump on April 9. The US hopes to reach an agreement with India within this time to avoid new tariffs.

US Vice President JD Vance also met Prime Minister Narendra Modi on Monday, showing that both sides are serious about making progress.

 

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