India prohibits online retailers abroad in stocks, which forced them to source of goods from a large network of sellers. On the other hand, locally funded online retailers such as Ajio, BigBasket and Nykaa, hold and sell their own goods. A change, if approved, could increase the competition between the two categories.
American negotiators quoted the need for “equal conditions” between the two categories, who mentioned the above -mentioned people on condition of anonymity.
“Both parties are exploring ways to solve the problem of more access to the market for electronic trading companies, especially the American companies Amazon and Walmart Flipkart,” one of these two people said.
The US has imposed 50% tariff in India – the highest – including 25% mutual tariff and 25% fine for buying Russian oil. Pressure on supplies based on supplies comes together with US challenges to regulatory transparency in digital trade, cloud services and logistics. Negotiations are suspended to turn off the US government, but it is expected to restore as soon as Washington reopens, these people said.
“Mutually beneficial”
“The Indian aspect is discussing the problem with its American counterparts to solve it in a mutually way. They shift its consequences to the political framework and any decision will be taken to remember the best interests of the country,” the other person said.
This step comes although the center evaluates its delayed comprehensive electronic trading policy to regulate data management, competition and protection of consumers in creating equal conditions for domestic and foreign players.
A spokesman for the US Embassy in Nový Delhi in -mail’s answer said, “Given the expiry of the US government, we cannot respond to routine press questions.”
Questions by e -mail the spokesperson of the Indian Ministry of Commerce and Industry remained unanswered.
Business associations, such as the Confederation of all Indian traders (CAIT), previously complained of Amazon and Flipkart allegedly violate the rule without enforcement.
“The US application for an authorization of inventory model in the Indian electronic trading sector raises serious concerns,” Cait said. “Such a framework could indirectly enable foreign electronic trading companies to participate in retail trading, which is contrary to the spirit of Indian FDI policy. It can also affect small traders and disrupt the competition of competition in the domestic market,” the official said.
With caution
India has banned companies in the field of electronic trading financed by foreign trade in the operation of a retail model based on stock notes 3, issued on 29 March 2016. This policy allows 100% of direct foreign investment under the automatic route only in the electronic trading market. Competition for small retailers.
The Indian comprehensive electronic trading policy, which is intended to tighten the rules for data management, competition and protection, faced delays and resistance to global players due to FDI limitation, data location requirements, and compliance with regulations.
According to previously cited people, policy may be temporarily included in Backburner because India reconsider its approach with regard to the uncertainty of global trade and developing geopolitical conditions.
Interviews on the bilateral trade agreement of India-USA (BTA) continued 16 September after a month’s break over the Indian red lines on agriculture, dairy and genetically modified crops. Both sides organized five rounds of personal interviews, while the sixth round, originally scheduled for August 25, stopped over the US requirements for India to open these critical industries to the US products. The interviews are aimed at closing in November.
Indian exports to the US rose in April-August FY26 by 18% to $ 40.35 billion, from $ 34.21 billion a year earlier, while imports increased by 8.5%, from $ 19.91 billion to $ 21.61 billion. This brought total bilateral trade to $ 61.96 billion over the period in FY26, which is 14.5% of $ 54.12 billion in FY25.
Large market
India is the second largest online market in the world, with 881 million Internet users and its digital economy could reach $ 800 billion by 2030, according to the India investment report. It is believed that the electronic trading market itself will increase to $ 325 billion, making it a key battlefield for global platforms.
By comparison, the global electronic trading market was awarded $ 26.8 trillion in 2024 and is expected to reach $ 214.5 trillion by 2033, according to Mordor news.
Concerns about domestic impact and implementation
India is considering a pilot project that allows electronic trading to the funded abroad to buy goods from local retailers, organize supplies and sell directly to overseas buyers, Mint reported. The plan, which is expected to be launched with the new Kingdom-Indian partners, would have platforms financed abroad export products only in circumvention of current restrictions on the market.
Industry management warns that mixing exports and domestic inventories could cause challenges in accordance with compliance.
“It is worried that to meet the timing schedule, the product could be accidentally sent through an inventory proposed to a third party or export instead of domestic or vice versa. Such cases could invite control from coercive bodies and be considered potential policy violations,”
At the same time, experts will notice the operational justification of US pressure.
Vivek Singhal, co -founder and CEO of BidSO, manufacturer of B2B outdoor toys, said: “Increased emphasis on efficiency and optimization of working capital is reflected in the American environment in the field of electronic trading in Indian domestic market.”
‘Models with light inventory can improve cash flow cycles and reduce storage costs by up to 25-30%because Indian electronic trade is expected to reach $ 350 billion by 2030.
Export hubs
As part of the revised Government framework, e-commerce export hubs (ECEHS) with simplified return logistics, easier interstate movement and faster GSTR replacement are operated. The model for the export of electronic trading will allow those facilitations of third-party facilitations to manage compliance and logistics on behalf of the exporters-especially micro, small and medium-sized enterprises (MSME)-what allows them to focus on quality and brand.
Indian small and medium exporters remain careful.
Vinod Kumar, president of the Indian forum of small and medium -sized enterprises, said that a step that allows exports based on inventory through electronic trading platforms could open new channels for small and medium exporters, but the brightness in implementation is essential.
“This idea is progressive and can help Indian MSMes to approach global markets. However, without a clear separation between export and domestic inventory, companies could face unnecessary risks of compliance. The rules must be transparent and practical to prevent future disputes,” Kumar said.
With me
- The US calls for India to allow electronic trading companies to hold and sell their own inventory.
- Contemporary Indian law prohibits online retailers abroad in stock maintenance.
- The US is looking for “straight conditions” with local retailers such as Ajio, BigBasket, Nykaa.
- The Association of Merchants warns the change in stocks strengthens foreign retail and hurts small sellers.
- The Indian delay of electronic trading policy suggests a re -evaluation in the middle of global trade uncertainties.
(tagstotranslate) India e-commerce Policy
