India amends Foreign Trade Policy to prohibit imports linked to forced labour

India has amended its Foreign Trade Policy (FTP) to empower the government to prohibit the import of goods manufactured wholly or partly using forced labour. The Directorate General of Foreign Trade (DGFT) issued the notification on July 13, and the amendment will come into effect after 30 days.

The new provision adopts the International Labour Organization (ILO) definition of forced labour and authorises the government to restrict imports if goods are found to have been produced using forced or compulsory labour.

The move comes as the United States continues a Section 301 investigation into whether several trading partners, including India, have adequate measures to prevent imports linked to forced labour.

For importers, the amendment is expected to increase supply chain due diligence and supplier verification requirements, particularly for products sourced from high-risk regions and sectors.

The policy also aligns India's trade framework more closely with international labour standards, as countries including the US, Canada and the European Union continue tightening regulations on imports associated with forced labour.