India Bans Import of Goods Made Using Forced Labour
Subject: Economy
Why in News?
The Union Government has prohibited the import of goods produced wholly or partly through forced labour. The notification, issued under India’s Foreign Trade Framework, is expected to strengthen India’s position in the ongoing India–U.S. interim trade agreement negotiations and align India’s trade policy with international labour standards.
What is the New Policy?
The Ministry of Commerce and Industry has notified a ban on imports of goods manufactured using forced labour.
Key Features
- Import of goods produced wholly or partly through forced labour is prohibited.
- The Director General of Foreign Trade (DGFT) will investigate cases involving suspected forced labour.
- Investigation procedures will be prescribed under the Handbook of Procedures, 2023.
- The Government may periodically notify specific goods covered under the prohibition.
Why Was This Decision Taken?
1. India–U.S. Trade Negotiations
- The United States is considering higher tariffs on countries that allegedly fail to prevent imports made using forced labour.
- A U.S. investigation identified India and 53 other countries as lacking effective import restrictions on forced-labour goods.
- Based on the investigation, the U.S. proposed a 12.5% tariff on imports from these countries.
- India has:
- Submitted its response to U.S. authorities.
- Objected to the proposed tariffs.
- Maintained that it will sign an interim trade agreement only if it receives better tariff treatment than competing economies.
2. Supply Chain Concerns
Another U.S. investigation is examining whether trading partners are using excess production capacity to increase exports to the U.S.
What is Forced Labour?
India has adopted the definition provided under the ILO Forced Labour Convention, 1930 (Convention No. 29).
Definition
Forced labour means:Any work or service exacted from a person under the threat of penalty and for which the person has not offered themselves voluntarily.
Exceptions
The Convention excludes certain forms of compulsory service, including:
- Military service
- Normal civic obligations
- Prison labour under legal supervision
- Emergency services
- Minor community services
Significance of the New Policy
- Aligns India’s trade policy with International Labour Organization (ILO) standards.
- Promotes ethical and responsible global supply chains.
- Strengthens corporate due diligence on labour practices.
- Enhances India’s credibility in international trade negotiations.
- Reduces the risk of trade restrictions related to labour rights.
- Marks a shift from relying only on domestic labour laws to incorporating labour standards into trade policy.
Earlier Position
Previously, India addressed forced labour mainly through:
- Domestic labour laws
- Criminal laws
- Constitutional safeguards
The Foreign Trade Policy did not contain a dedicated prohibition on imports linked to forced labour.
The new notification represents a major policy shift by integrating labour rights into international trade regulation.
ILO Forced Labour Convention, 1930 (Convention No. 29)
Objective
To eliminate forced or compulsory labour in all its forms.
Adopted
- 28 June 1930
- Adopted by the International Labour Conference (ILC) under the ILO.
Ratification Status
| Country | Ratification Status | Year |
|---|---|---|
| India | Ratified | 30 November 1954 |
| China | Ratified | 12 August 2022 |
| United States | Not Ratified | — |
Note: ILO Conventions are adopted by the International Labour Conference and are ratified individually by member countries.
