Overview

• The US is pressuring India to open its $125-billion ecommerce market to companies like Amazon and Walmart by removing marketplace-only restrictions.
• A 26% tariff on Indian exports to the US has been temporarily paused for 90 days to facilitate trade agreement negotiations.
• US Vice-President J.D. Vance and Indian Prime Minister Narendra Modi have acknowledged progress in the talks, linking them to broader bilateral cooperation in sectors like energy and defense.
• Indian trade groups, representing 90 million small traders, warn that easing restrictions could harm local businesses and disrupt the retail ecosystem.
• Amazon and Walmart are actively lobbying both governments, arguing that India's ecommerce restrictions act as non-tariff barriers to foreign investment.