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India Prohibits Imports of Goods Linked to Forced Labour, Strengthens Ethical Trade Policy

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New Delhi: In a significant move to reinforce ethical trade practices and align its import regulations with global labour standards, the Central Government has barred the import of goods that are produced, either wholly or partially, through the use of forced labour.

The decision was notified by the Directorate General of Foreign Trade (DGFT) under the Ministry of Commerce and Industry through an amendment to the Foreign Trade Policy (FTP), 2023. A new provision—Paragraph 2.20B—has been added to the policy, formally prohibiting the entry of products found to be manufactured using forced labour.

Under the revised framework, the Centre will identify and notify specific categories of goods that will be banned from import after conducting detailed inquiries and examining relevant evidence. The process for such investigations will be outlined separately in the Handbook of Procedures, 2023.

The amendment also introduces, for the first time, a formal definition of “forced labour” in Chapter 11 of the Foreign Trade Policy. The definition mirrors the International Labour Organisation’s (ILO) Forced Labour Convention, 1930 (Convention No. 29), describing forced labour as work or service extracted from an individual under the threat of punishment and performed without voluntary consent.

Officials said the policy change is aimed at ensuring that India’s trade ecosystem does not support exploitative labour practices while encouraging responsible sourcing and transparent global supply chains.

The new provisions will become effective 30 days after the notification is published in the Official Gazette. The amendment has been issued with the approval of the Union Minister for Commerce and Industry.

The latest policy builds upon India’s longstanding legal framework against forced labour. The country outlawed bonded labour through the Bonded Labour System (Abolition) Act, 1976, and has continued efforts to address labour exploitation within its borders.

In recent years, the National Human Rights Commission (NHRC) has undertaken a review of forced labour cases across several states. Uttar Pradesh has recorded 216 documented complaints related to forced labour, while Haryana has reported 84 such cases, highlighting the continuing challenge of eliminating exploitative labour practices domestically.

With the new import restrictions, India has signalled its intent to integrate ethical sourcing standards into its trade policy while strengthening oversight of products entering the country. The move is expected to encourage greater accountability in international supply chains and support fair labour practices across global commerce.

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