New Delhi, July 15: The Indian government has unveiled a framework to prohibit import of goods manufactured using forced labour, empowering authorities to investigate supply chains and ban products found to have been produced through coercive labour practices.
The move comes at a time when the United States is investigating India and several other countries over the alleged use of forced labour in export supply chains and plans an additional tariff of 12.5% if such practices are established.
The Directorate General of Foreign Trade (DGFT) of India has notified detailed procedures for determining whether imported goods are made using forced labour.
The framework allows the DGFT to initiate investigations either suo motu or based on complaints supported by credible evidence.
Under the new procedures, the government can examine importers, exporters and manufacturers, seek technical inputs from domestic and international organisations, consult other government agencies and gather additional information during the course of an inquiry.
If an investigation establishes that imported goods have been produced using forced labour, the government may prohibit their import under the Foreign Trade (Development and Regulation) Act. The list of banned products will be notified separately.
The notification also introduces a legal definition of forced labour into the Foreign Trade Policy. It defines forced labour as work or service extracted under the threat of penalty and undertaken involuntarily.
“While India has so far relied largely on labour and criminal laws to address forced labour domestically, the Foreign Trade Policy now incorporates a dedicated trade measure aligned with international standards under the ILO Forced Labour Convention,” said Manoj Mishra, Partner and Tax Controversy Management Leader at Grant Thornton Bharat. He added that the move strengthens India’s regulatory framework on ethical sourcing.
India is a major importer of Chinese goods. US authorities have identified products such as cotton, textiles, solar-grade polysilicon, seafood, metals, batteries and electronics—particularly those linked to China’s Xinjiang region—as sectors vulnerable to forced-labour risks.
WHAT THE NEW RULE MEANS
The decision is expected to strengthen India’s import regulations and encourage businesses to pay closer attention to their global supply chains. Importers may now need to ensure that the goods they source from overseas suppliers meet ethical labour standards.
The move also brings India in line with a growing global focus on responsible sourcing and fair labour practices. Several countries have introduced similar measures in recent years to prevent products made through forced labour from entering their markets.
While the notification does not specify particular products or countries, it gives the government the legal authority to act whenever such concerns arise. The step is expected to promote fair trade, protect workers’ rights and ensure that imported goods meet acceptable labour standards. (BVI)
