India Amends Trade Policy to Ban Imports Made with Forced Labour

India has amended its Foreign Trade Policy (FTP) 2023 by inserting Paragraph 2.20B, which prohibits the import of any goods produced or manufactured, wholly or in part, through the use of forced labour. The amendment, issued by the Directorate General of Foreign Trade (DGFT), will take effect 30 days after its publication in the Official Gazette. The DGFT may, after an inquiry, issue notifications to ban specific products, and the policy now includes a definition of “forced labour” drawn from the ILO Forced Labour Convention, 1930.

The change comes as the United States Trade Representative conducts Section 301 investigations into forced‑labour practices in about 60 economies, including India, and has proposed a 12.5 % tariff on imports from countries that do not block such goods. India’s move is presented as aligning its trade rules with international standards and strengthening its position in ongoing bilateral trade talks with the United States.

Separately, Sri Lanka’s President Anura Kumara Dissanayake issued presidential regulations that similarly banning the import of goods made with forced labour, regardless of where the exploitation occurs. The Sri Lankan rules apply to any product in the supply chain and aim to bring the country’s trade framework in line with global human‑rights standards, mirroring measures adopted by the EU, the US and other major economies.