• India has amended its Foreign Trade Policy (FTP) 2023 to prohibit the import of goods produced wholly or partly using forced labour.

• The move aligns India’s trade rules with international labour standards and strengthens supply chain credibility.

• The amendment comes as the US Trade Representative (USTR) investigates 60 countries, including India, over inadequate restrictions on forced labour imports.

• The USTR has proposed additional tariffs on countries that do not effectively prohibit imports linked to forced labour.

• According to the International Labour Organization (ILO), forced labour refers to work performed under threat or coercion without voluntary consent.

• Globally, an estimated 28 million people are affected by forced labour across sectors such as agriculture, mining, manufacturing, construction and services.

• Countries including the US, Canada, Mexico, and the EU already prohibit imports of goods made using forced labour.

• Forced labour is considered both a human rights violation and an unfair trade practice because it lowers production costs and creates unfair competition.

• India has stated that eliminating forced labour is a constitutional, legal and moral obligation, while disputing the USTR’s claim that its previous policy harmed US commerce.

• The DGFT notification provides the government with the authority to investigate complaints and ban specific imports found to be linked to forced labour.

• The amendment creates an enabling legal framework and does not impose an immediate blanket ban on all imports.

• India already prohibited forced labour within the country, but this amendment closes the gap by addressing imports produced using forced labour abroad.

• The policy is expected to strengthen India’s position in international trade negotiations, though it may not by itself prevent proposed US tariffs under the ongoing Section 301 investigation.