United States demands free access to domestic market for Amazon and Walmart from India

By Alimat Aliyeva

During ongoing trade negotiations, the U.S. presidential administration is pressing the Indian government to grant American e-commerce giants, primarily Amazon and Walmart, freer access to India’s domestic online retail market.

According to sources familiar with the matter, Washington views this demand as a key condition for finalizing a broader trade agreement and refraining from imposing import tariffs of up to 26%.

Executives from Amazon and Walmart have repeatedly lobbied the White House, raising concerns about restricted access to the Indian e-commerce sector, which is currently valued at approximately $125 billion. These companies are now working closely with U.S. trade officials as part of formal negotiations with the Indian leadership.

At present, American corporations are permitted to operate in India only under a limited “marketplace” model. This framework prohibits them from directly selling their own goods and services and restricts inventory control. Additionally, U.S. firms often face scrutiny from Indian regulators, as the country’s legal framework is designed to shield domestic players—most notably the powerful Reliance Group and a vast network of small, independent retailers.

India’s government has long emphasized the importance of protecting its local businesses, especially in a country where traditional retail is not just a commercial sector but also a major source of employment. Over 12 million small retail shops, or kiranas, play a critical role in the economy and community life, and many fear that unrestricted access for global tech giants could disrupt this ecosystem.

This standoff reflects a broader global trend: the growing tension between protectionist policies and digital globalization. As e-commerce becomes a battleground for influence and market dominance, India—one of the world’s fastest-growing digital economies—stands at the center of this geopolitical and economic tug-of-war.