View: Getting out of a diplomatic snafu over ecommerce
international trade relations, the world watches with bated breath. The US, already vocal about India's trade practices, might retaliate with tariffs on Indian goods, affecting exports, and livelihoods.
Indian ecommerce is at a crossroad with local retailers up in arms against MNCs, particularly those from the US. The recent reported actions against e-commerce vendors and players have sparked concerns about the impact on the domestic market.
India’s ecommerce market is set to grow to $325 bn, and the digital economy to reach $800 bn by 2030, driven by increasing internet penetration, low-cost smartphones, and GoI initiatives like ‘Make in India’ and ‘Startup India’. This growth has attracted MNCs like Amazon and Walmart, which have invested heavily in the Indian market.
Local retailers are worried about the dominance of MNCs in the ecommerce space, which they believe threatens their livelihoods. They argue that these companies enjoy unfair advantages, such as access to cheap capital, advanced technology, and global supply chains. Retailers are seeking government intervention to level the playing field.
Donald Trump’s re-election has significant implications for India-US trade relations. During his first term, Trump imposed tariffs on Indian goods, steel and aluminium, and terminated India's preferential market access, Generalised System of Preferences (GSP) — alleging India has not given the US ‘equitable and reasonable access to its markets’.
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