NEW DELHI : India has amended its foreign trade policy to prohibit the import of goods that are produced through the use of forced labour. The move is likely to help address concerns raised by the United States in an ongoing trade investigation, under which it has threatened to impose 12.5 per cent tariffs on imports of goods from India and several other countries.
The Directorate General of Foreign Trade (DGFT) has issued a gazette notification dated July 13, 2026 in this regard. “The import of goods produced or manufactured, wholly or in part, through the use of forced labour is prohibited,” reads the notification, which was made public on Tuesday. The notification will come into force after 30 days.
“The order establishes a legal framework rather than an immediate import ban. Its effectiveness will depend on how the government conducts investigations, the evidence required to establish forced labour, and the products it ultimately targets,” said Ajay Srivastava, Founder of the Global Trade Research Initiative (GTRI).
The move comes as major economies tighten restrictions on goods linked to forced labour. The US has launched Section 301 investigations covering about 60 economies, including India, and has proposed a 12.5 per cent tariff on imports from India and most other countries under review.
The European Union and Pakistan are proposed to face a lower 10 per cent tariff after introducing domestic measures to prohibit imports made with forced labour.
Against this backdrop, India’s notification signals that it is strengthening its domestic legal framework in line with international standards, a step that could strengthen its position in future trade negotiations and market-access discussions.
“India’s notification is a sensible first step, but its credibility will ultimately depend on enforcement. The real challenge is proving that a product is made with forced labour when production spans multiple countries and opaque supply chains,” said Srivastava.
While the notification does not specify particular products or countries, it gives the government the legal authority to act whenever such concerns arise. The step is expected to promote fair trade, protect workers’ rights and ensure that imported goods meet acceptable labour standards.
The US considers products such as cotton, textiles, solar-panel polysilicon, seafood, metals, batteries and electronics vulnerable to forced-labour risks.
