India has amended its Foreign Trade Policy (FTP) to ban the import of goods produced or manufactured using forced labour. The Directorate General of Foreign Trade (DGFT) issued a notification introducing the new rule. The amendment allows the Central Government to prohibit the import of goods found to have been made wholly or partly through forced labour. The new provisions will come into effect 30 days after their publication in the Official Gazette.

The amendment adds a new provision, Paragraph 2.20B, to the Foreign Trade Policy, 2023. Under this rule, India will not allow the import of goods produced or manufactured, either fully or partly, through forced labour. The Central Government can issue separate notifications to identify products that will face import restrictions. The decision will depend on the findings of an inquiry or any other material the government considers appropriate.

The DGFT will conduct inquiries to determine whether imported goods involve forced labour during production or manufacturing. If the inquiry finds sufficient evidence, the DGFT can recommend that the government prohibit the import of those products. The inquiry process will follow the procedures laid down in the Handbook of Procedures, 2023.

The notification also introduces a new definition of "forced labour" under Chapter 11 of the Foreign Trade Policy. India has adopted the definition provided in the International Labour Organization's (ILO) Forced Labour Convention, 1930 (No. 29). According to the notification, forced labour means "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."

The latest amendment aligns India's trade policy with internationally accepted labour standards. It also strengthens the country's legal framework to stop the import of goods linked to forced labour. The DGFT said the changes will help the government take action against products that fail to meet these standards.

The move comes at a time when India is among several countries facing a proposed additional tariff from the United States. The US is conducting an investigation to assess whether its trading partners have adequate systems to prevent the import of goods made using forced labour. Under the proposed measure, India could face an additional tariff of up to 12.5%.

At present, most Indian exports to the United States attract a 10% tariff. Along with the forced labour investigation, the US is also carrying out separate inquiries related to excess industrial capacity. These developments have increased attention on India's trade policies and import regulations.

The new amendment gives the Central Government the authority to notify specific goods that will face import restrictions after reviewing the findings of an inquiry. The government can also rely on any other material it considers suitable while making such decisions. This provision gives authorities greater flexibility to act against imports linked to forced labour.

The DGFT will play a key role in implementing the new policy. It will examine imported goods, gather evidence, and determine whether forced labour was involved during production. If the findings support such claims, the DGFT will submit its recommendations to the government. The final decision on restricting imports will rest with the Central Government.

The notification was issued under the Foreign Trade (Development and Regulation) Act, 1992. The Ministry of Commerce and Industry approved the amendment before its release. The government said the revised policy strengthens India's trade framework and supports fair trade practices. It also brings the Foreign Trade Policy closer to the standards set by the ILO Forced Labour Convention.

With these changes, India has taken a significant step to ensure that imported goods meet accepted labour standards. The new provisions create a formal process to investigate products suspected of involving forced labour and allow the government to stop such imports when necessary. The amendment also reflects India's effort to strengthen its trade regulations while aligning them with global labour norms.