The U.S. is turning up the heat on India, pushing hard to give big American e-commerce players like Amazon and Walmart a clear path into the country’s massive $125 billion online market. Right now, India’s rules don’t exactly roll out the red carpet—foreign companies can’t stock goods or sell directly to consumers. The U.S. sees that as a roadblock, or in trade terms, a “non-tariff barrier.”
But here’s the kicker: Washington is reportedly dangling the threat of a 26% tariff on Indian exports if it doesn’t get its way. That’s got a lot of folks in India worried—especially the 90 million small traders who feel like they’re already walking a tightrope. Loosening the rules might just tilt the playing field too far in favor of the big guys.
It’s a tricky spot for India—trying to keep trade partners happy without throwing its own MSMEs under the bus. Let’s just say… this won’t be an easy decision.
