New Delhi: The US has reportedly set its eyes on India’s e-commerce market with the Trump administration expected to push India to give American online retailers wider access to it amid ongoing tariff negotiations.

According to industry executives, lobbyists and US government officials cited by the Financial Times, the Trump administration wants a level playing field for American retailers like Amazon and Walmart in the $125 billion Indian market as it negotiates a trade deal with the Modi government.

US Vice-President J.D. Vance has arrived in India for a four-day visit starting April 21 (Monday) to this end. A statement released by the Indian side after their meeting on Monday noted that both Vance and Modi “welcomed the significant progress in the negotiations for a mutually beneficial” trade agreement and the “continued efforts towards enhancing cooperation in energy, defence, strategic technologies and other areas”.

According to the report, Walmart chief Doug McMillon was among those who brought up India’s “non-tariff barriers” against foreign e-commerce companies with Trump. The Indian e-commerce giant was acquired by Walmart in 2018.

At the moment, India allows foreign e-commerce companies to only function as online marketplaces for others to sell their products. Their Indian competitors can produce, own and sell goods through their platforms.

The Trump administration’s push to open up the Indian market to American giants will translate into direct competition with India’s largest retailer, Reliance, owned by Mukesh Ambani, the report said.

“Since 2006, the US has been trying to open up India’s domestic market, and has been stymied successfully ever since,” Arvind Singhal, chair of retail consulting firm Technopak Advisors, told the Financial Times.

“The attempt to pressure India into opening its e-commerce sector wider for American giants like Amazon and Walmart reflects a broader pattern of economic diplomacy aimed at securing market dominance for its corporations,” said Praveen Khandelwal, secretary-general of the Confederation of All India Traders and a Bharatiya Janata Party MP.

“While foreign investment is welcome, it must not come at the cost of distorting India’s retail ecosystem or undermining the interests of its [90mn] small traders,” he added.