India has put in place a legal framework that empowers the government to prohibit imports of goods produced using forced labour, marking a significant step in strengthening its trade compliance regime amid increasing global scrutiny of supply chains.
The move, however, does not immediately ban imports of any products or target shipments from any specific country.
Instead, the new framework authorises the government to prohibit identified goods through future notifications following investigations by the Directorate General of Foreign Trade (DGFT).
The notification adopts the International Labour Organization's (ILO) definition of forced labour, describing it as work or service extracted from a person under the threat of penalty and without the individual's voluntary consent.
The framework provides the legal basis for future action against imports found to involve forced labour, while leaving the identification of affected products to subsequent investigations and government notifications.
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The development comes at a time when the United States is conducting a Section 301 investigation into alleged forced labour practices involving imports from several countries, including India.
Following the probe, the US has proposed imposing an additional 12.5% tariff on imports from India and most other countries under review.
Currently, most Indian exports to the US are subject to a 10% tariff. However, higher duties could be imposed under separate US investigations into issues such as forced labour and industrial overcapacity.
The notification is expected to strengthen India's regulatory framework by aligning it more closely with internationally recognised labour standards while providing the government with a mechanism to act against imports linked to forced labour if required.
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