India under tariff pressure to give Amazon and Walmart full market access: Report

The United States is reportedly set to urge India to grant online retailers such as Amazon and Walmart full access to its Rs 125 billion e-commerce market.

According to industry executives, lobbyists and US government officials, Donald Trump's administration plans to push Prime Minister Narendra Modi’s government for a level playing field on e-commerce in wide-ranging talks on a US-India trade agreement set to also cover sectors from food to cars, as reported by The Financial Times on Tuesday.

However, it did not mention what measures the Trump administration expects from the Indian government.

Currently, India allows US e-commerce companies to operate only as online marketplaces for others to sell their products.

Their Indian competitors can produce, own and sell goods through their platforms. Washington calls this a “non-tariff barrier”, alongside limits on foreign direct investment in retail, added the report.

Reliance, for instance, can open physical stores and leverage its expansive retail and logistics network to reach consumers more directly and extensively in India.

Meanwhile, the White House, Amazon, Walmart, and Reliance did not respond to news outlet’s requests for comment.