India bans forced labour imports
Analysis based on 25 articles · First reported Jul 14, 2026 · Last updated Jul 15, 2026
The amendment may reduce trade tensions with the US and improve India's position in bilateral trade negotiations. However, it could increase compliance costs for importers and affect supply chains in sectors like textiles and electronics.
India amended its Foreign Trade Policy 2023 on July 13, 2026, to prohibit imports of goods produced using forced labour, aligning with ILO Convention No. 29. The India — Directorate General of Foreign Trade (DGFT) issued a notification inserting Paragraph 2.20B, which bans imports wholly or partly made with forced labour, effective 30 days after publication. The move creates a legal framework for future product-specific bans following DGFT inquiries. This comes amid a US Section 301 investigation into 60 economies, including India, over alleged failure to enforce forced labour import bans. On June 3, the US proposed a 12.5% tariff on 54 countries, including India, while six countries with domestic bans face 10% tariffs. India's amendment is seen as a response to US pressure and a step to strengthen its trade compliance. Think tank GTRI noted the framework's effectiveness depends on enforcement. EY India's Agneshwar Sen highlighted that adopting the ILO definition aligns India with international standards.
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