US-India trade talks focus on ‘level playing field’: report

Ensuring “a level-playing field” for US e-commerce firms such as Amazon and Walmart-owned Flipkart came up for discussions from the American side in the initial phase of India-US negotiations over a potential bilateral trade agreement, Mint reported on Thursday, citing two people aware of the matter.

American negotiators raised the issue during talks with their Indian counterparts in Washington this month, the report said.

The initial trade talks between India and the US concluded on 8 March without a firm resolution due to multiple disagreements, but both sides agreed to continue discussions.

Currently, foreign e-commerce firms can operate only on a marketplace model, prohibiting them from owning and selling inventory, unlike domestic counterparts.

India had adopted this policy to promote fair competition and protect small businesses and consumers.

American negotiators pushed for changes allowing US-based e-commerce firms to operate on an inventory model, a demand not yet accepted by Indian officials.

India is considering granting limited inventory access to foreign e-commerce firms, while maintaining regulatory oversight, the Mint report said.

Other key issues involved include data localization, deep discount restrictions, and compliance with India’s foreign direct investment (FDI) norms for e-commerce.

The sector is governed by multiple laws, including the FDI policy, Consumer Protection Act (2019), Information Technology Act (2000), and Competition Act (2002).