WASHINGTON, D.C.: The United States plans to press India for sweeping changes to its e-commerce policies as part of negotiations aimed at securing a broader trade agreement, the Financial Times reported this week, citing U.S. officials, industry executives, and lobbyists.

According to the report, President Donald Trump's administration is seeking full market access for American companies like Amazon and Walmart, which currently face significant restrictions on how they can operate in India's rapidly growing US$125 billion e-commerce sector.

India allows foreign players to participate only through marketplace models, barring them from holding inventory or selling directly to consumers. These rules do not apply to domestic giants such as Reliance, which enjoys the advantage of physical retail stores and an expansive distribution network.

The issue is expected to be central in trade talks covering sectors including food and automobiles, as both countries work toward a deal during a 90-day pause on U.S. tariff hikes announced earlier this month.

Neither Amazon nor Walmart immediately responded to Reuters' requests for comment.

The trade talks are unfolding against the backdrop of escalating global tariff tensions, with India among several Asian economies seeking to avoid the brunt of new duties imposed by the Trump administration.

This week, U.S. Vice President JD Vance met with Indian Prime Minister Narendra Modi in New Delhi, signaling a high-level push to finalize a deal before the July deadline. Indian officials say they hope to reach an agreement that protects their domestic industry while addressing American concerns over market access.

The Financial Times report did not specify what exact concessions Washington is demanding, but the focus appears to be on creating a more "level playing field" between U.S. and Indian retailers.

Both sides have yet to confirm when a formal agreement might be reached, though pressure is building to conclude talks before Trump's tariff pause expires.