Media365
India prohibited the import of goods produced using forced labour, a move aimed at tightening trade rules and addressing concerns raised by the United States ahead of a possible tariff action against countries accused of failing to prevent such imports.
The Ministry of Commerce and Industry said the government has amended the Foreign Trade Policy to empower authorities to restrict the entry of goods manufactured, wholly or partly, through forced labour.
The decision comes as India faces a proposed additional tariff of up to 12.5 per cent from the United States under a Section 301 investigation by the US Trade Representative (USTR) into countries alleged to have inadequate safeguards against forced labour-linked imports.
The USTR probe covers around 60 countries, including India. Washington has said the investigation will examine whether trading partners have taken sufficient steps to prevent goods made through forced labour from entering global supply chains.
The notification issued by the Directorate General of Foreign Trade (DGFT) said the government can prohibit imports of goods produced or manufactured, wholly or in part, through forced labour.
“The central government may, by notification, prohibit the import of goods produced or manufactured, wholly or in part, through the use of forced labour,” the notification said.
The new rule will come into effect after 30 days.
Under the revised framework, the DGFT will investigate whether imported goods were produced using forced labour. If evidence is established, the agency will recommend restrictions on specific products after consultations with relevant stakeholders.
India adopts global definition of forced labour
As part of the move, India will use the International Labour Organisation’s (ILO) definition of forced labour to strengthen its regulatory framework.
The ILO’s Forced Labour Convention of 1930 defines forced labour as any work or service extracted from a person under the threat of penalty and for which the individual has not offered themselves voluntarily.
The government said adopting the international definition would help align India’s trade policy with global standards and create a stronger mechanism to monitor supply chains.
India’s move comes at a time when countries are facing growing pressure to ensure that global trade does not involve exploitative labour practices. Several advanced economies, including the US, have introduced stricter rules targeting goods linked to forced labour.
Move could help India avoid higher US tariffs
The notification assumes significance as India negotiates trade issues with the US, where forced labour concerns have emerged as one of the issues under scrutiny.
Indian exports currently face a 10 per cent US tariff under existing trade measures. However, additional duties could be imposed following the USTR investigations into forced labour and excess industrial capacity.
The USTR has proposed an additional 12.5 per cent tariff on imports from countries that fail to address concerns related to forced labour-linked goods.
India has rejected allegations that it lacks adequate safeguards and has maintained that its labour laws and trade practices follow international norms.
The latest move could strengthen New Delhi’s position in ongoing trade negotiations by showing that India is taking steps to address Washington’s concerns.
Trade talks continue amid tariff uncertainty
The move comes as India and the US continue negotiations on a broader trade agreement.
Commerce Secretary Rajesh Agrawal had earlier said the framework agreement between the two countries could identify “possible pathways” to address issues emerging from the US investigations.
The US tariff proposals follow a broader review of trade practices after legal challenges to President Donald Trump’s reciprocal tariff measures. The administration subsequently ordered investigations into issues including forced labour and excess industrial capacity.
With global supply chains facing greater scrutiny, India’s latest policy change is expected to provide exporters with a clearer compliance framework while signalling that New Delhi is willing to address labour-related concerns without compromising its trade interests.
With inputs from agencies.
