Jobaaj Stories
US Pushes India to Ease E-Commerce Rules for Amazon and Walmart
The United States is urging India to relax its strict e-commerce rules to allow American giants like Amazon and Walmart’s Flipkart greater access to India's fast-growing online shopping market. This request is part of broader trade discussions between the two countries aimed at boosting economic ties and reducing trade barriers.
India’s $125 Billion E-Commerce Market in Focus
India’s e-commerce sector is expected to reach $125 billion in value, making it one of the most attractive markets for global companies. However, strict local rules limit what foreign-owned e-commerce companies can do. Current laws prevent companies like Amazon and Walmart from selling their own inventory directly to Indian consumers. Instead, they must operate as digital marketplaces for third-party sellers.
On the other hand, Indian companies such as Reliance Retail face fewer restrictions and are allowed to directly sell their own products online. This has created an uneven playing field that the US sees as a major obstacle to fair competition.
Trade Talks Highlight Growing Friction
US Vice President JD Vance recently traveled to New Delhi and held talks with Indian Prime Minister Narendra Modi. A major topic was the ongoing trade agreement the two countries have been negotiating for several months.
The US is pushing for stronger access in key areas like food, agriculture, automobiles, and especially e-commerce. In return, India wants to avoid facing new tariffs on its exports to the US and is looking for ways to find middle ground.
Flipkart Plans to Move Base Back to India
Walmart-owned Flipkart is planning a major shift by relocating its holding company from Singapore to India. This move is seen as a strategic step to align more closely with Indian laws and potentially prepare for a future IPO.
By moving its base back to India, Flipkart could also gain a more favorable public image and possibly attract more domestic investors. The timing of this move suggests it may be part of a larger plan tied to ongoing trade negotiations and regulatory changes.
Doubling Trade Is the Long-Term Goal
Both the US and India are working toward a bigger goal: doubling their trade volume to $500 billion by the year 2030. To reach this milestone, both countries must find ways to bridge gaps on regulatory issues, including digital trade and foreign investment.
India has been cautious about allowing too much foreign control in its retail sector. But with economic pressure growing and investment on the line, some changes may be on the horizon.
