Amazon and Walmart are competing to expand their footprint in India – one of their most important growth markets.

On Thursday, according to a report from the Economic Times, Amazon.com Inc has engaged in exploratory talks with India’s Reliance Industries Ltd-owned Reliance Retail for acquiring a stake, of up to 26%.

Negotiations between Reliance and the Alibaba Group fell through over differences over valuation, said the ET, citing two senior industry executives.

Sources speaking on the condition of anonymity have cautioned saying, these exploratory negotiations need not lead to a deal.

Amazon has been flexing its muscles to increase its footprint in the lucrative Indian market which has dominant players including Walmart Inc-owned Flipkart. Both companies have announced plans to attract more customers in what is viewed as one of their most important growth markets.

According to sources, Amazon aims to foray into the burgeoning online food delivery business in India later this year.

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Tags: Alibaba Group, Amazon.com Inc, Economic Times, ET, exploratory talks, Flipkart, food delivery, growth markets, India, negotiations, online, purchase, Reliance Industries Ltd, Reliance Retail, stake, valuation