The Centre has put in place a framework to prohibit imports 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 Directorate General of Foreign Trade (DGFT) 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.
The move comes at a time when the United States is investigating around 60 economies, including India and China, over the alleged use of forced labour in export supply chains. The US has proposed an additional tariff of 12.5% if such practices are established. However, commerce ministry officials said the new framework is a routine regulatory measure and should not be linked to the US action.
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.
Experts welcomed the notification but said its effectiveness will depend on how the inquiry mechanism is implemented and the compliance framework prescribed under the Handbook of Procedures.