India bans imports made with forced labour under amended FTP 2023
Synopsis
Key Takeaways
India has amended its Foreign Trade Policy (FTP), 2023 to prohibit the import of goods produced or manufactured using forced labour, marking a significant tightening of the country's trade policy framework. The Directorate General of Foreign Trade (DGFT) issued the notification on 14 July, inserting a new provision — Paragraph 2.20B — into the FTP, with the amendments set to take effect 30 days after their publication in the Official Gazette.
What the Amendment Says
Under the revised policy, the Central Government is empowered to prohibit the import of goods found to have been produced, wholly or partly, through the use of forced labour. The government may notify specific products for import restrictions based on the findings of an inquiry or any other material it considers appropriate.
The amendment also introduces a formal definition of 'forced labour' under Chapter 11 of the FTP, adopted directly from the International Labour Organization's (ILO) Forced Labour Convention, 1930 (No. 29). According to the notification, forced labour refers to 'all work or service which is exacted from any person under the menace of any penalty and for which the said person has not offered himself voluntarily.'
How the Inquiry Mechanism Works
The DGFT will examine whether imported goods have been produced using forced labour through a formal inquiry process, carried out in accordance with procedures prescribed under the Handbook of Procedures, 2023. If evidence establishes the use of forced labour, the DGFT may recommend that the government prohibit imports of those goods.
The notification was issued under the provisions of the Foreign Trade (Development and Regulation) Act, 1992, with the approval of the Minister of Commerce and Industry.
Why This Matters
The move brings India's trade regulations in line with internationally recognised labour standards, closing a gap that critics had long flagged in the country's import framework. Notably, several major economies — including the United States and the European Union — have enacted similar forced-labour import bans in recent years, and India's amendment signals a convergence with those global norms.
This is also a signal to India's trading partners and global supply chains that goods linked to coerced or bonded labour will face regulatory scrutiny at Indian ports. The alignment with the ILO convention lends the framework multilateral credibility.
What Happens Next
The amendment will come into force 30 days after gazette publication. Industry bodies and importers will need to review their supply chains, particularly for goods sourced from regions where forced labour risks have been flagged internationally. The DGFT is expected to issue further procedural guidance through the Handbook of Procedures on how inquiries will be initiated and conducted.