Tue Apr 22 06:30:00 UTC 2025: ## US Pressures India to Open E-commerce Market to American Companies

**New Delhi, India** – The United States is intensifying pressure on India to ease restrictions on its e-commerce market, aiming to allow American companies greater access to the lucrative $125 billion sector. This comes amidst ongoing trade negotiations between the two countries, complicated by India’s 26% tariffs on certain US goods.

According to a Financial Times report, the US is arguing that current regulations create an uneven playing field, favoring Indian companies. Specifically, the US objects to a rule that restricts foreign e-commerce platforms from selling their own products, while allowing Indian companies to sell their goods on their own platforms. This is considered a non-tariff barrier by the US, alongside restrictions on foreign direct investment.

Walmart, which owns Flipkart, a major player in the Indian e-commerce market, has reportedly raised concerns with US President Biden about these regulations. The US also wants India to adopt a price openness policy, allowing for greater competition between giants like Amazon and Flipkart and Indian retail giant Reliance.

While US Vice President Kamala Harris recently visited India and stated that progress was made on several fronts, including energy, defense, and strategic technologies, the e-commerce dispute remains a significant sticking point. The Confederation of All India Traders voiced concerns, stating that while foreign investment is welcome, it shouldn’t come at the cost of harming local businesses and small traders.

The US has been pushing for greater access to the Indian market since 2006, but has faced considerable resistance. Furthermore, foreign e-commerce companies in India report frequent inspections by the Bureau of Indian Standards. The Financial Times suggests the US is closely coordinating with its e-commerce giants during these negotiations, underscoring the importance of this issue in the broader trade relationship. The battle for market share between Amazon (40 million daily active users) and Flipkart (50 million daily active users) further complicates the situation.

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