Forced labour explained: Why India changed its import policy
The central government amended the Foreign Trade Policy (FTP), 2023, through a Directorate General of Foreign Trade (DGFT) gazette notification to prohibit the import of goods produced, wholly or partly, using forced labour.
The amendment creates a legal framework enabling the government to notify a ban on specific goods whenever an inquiry finds credible evidence of forced-labour use in their production; inquiry procedures will be laid down in the Handbook of Procedures, 2023.
A statutory definition of "forced labour" was inserted, aligned with the International Labour Organization's Forced Labour Convention, 1930 (No. 29) — covering all work extracted under menace of penalty and not offered voluntarily.
The new provision comes into effect 30 days after gazette publication, and follows a US Trade Representative determination naming India among economies that have not adequately prohibited or enforced action against forced-labour-linked imports.
Article 23 — Prohibition of Traffic in Human Beings and Forced Labour
Article 23(1) of the Constitution, under Part III (Fundamental Rights), prohibits "traffic in human beings and begar and other similar forms of forced labour," making any contravention a punishable offence. Article 23(2) carves out an exception allowing the State to impose compulsory service for public purposes (e.g., military or disaster-response service), provided it does not discriminate on grounds of religion, race, caste, or class alone. Unlike most Fundamental Rights, Article 23 is enforceable against private individuals as well as the State, and protects every person within India's territory, not just citizens.
Key Details
- Article 23 falls under Part III (Fundamental Rights); enforceable via Article 32 (Supreme Court) or Article 226 (High Courts)
- "Begar" refers to labour exacted without payment; the Supreme Court has held that paying below statutory minimum wages can itself constitute "forced labour" under Article 23 (People's Union for Democratic Rights v. Union of India, 1982 — the Asiad workers case)
- Twelve pre-constitutional laws sanctioning forms of forced labour were rendered void upon Article 23's enactment
- Statutory implementation: Bonded Labour System (Abolition) Act, 1976
The Foreign Trade Policy amendment operationalises India's own constitutional commitment against forced labour (Article 23) in the trade domain — extending the prohibition from domestic labour practices to the goods India imports from abroad.
ILO Forced Labour Convention, 1930 (No. 29) and India's International Commitments
The Forced Labour Convention (No. 29), adopted by the International Labour Organization in 1930, requires member states to suppress the use of forced or compulsory labour in all its forms within the shortest possible period. It is one of the ILO's eight fundamental/core conventions. India ratified Convention No. 29 on 30 November 1954, and the new DGFT definition of "forced labour" explicitly mirrors this Convention's language — "all work or service exacted from any person under the menace of any penalty and for which the said person has not offered himself voluntarily."
Key Details
- ILO Forced Labour Convention, 1930 (No. 29) — ratified by India: 30 November 1954
- India has also ratified the Abolition of Forced Labour Convention, 1957 (No. 105)
- ILO's eight fundamental conventions cover forced labour, child labour, discrimination, and freedom of association; India has ratified six of the eight (notably not the Freedom of Association Convention, No. 87, or the Right to Organise Convention, No. 98)
- Aligning domestic trade law definitions with ILO Convention language strengthens India's position in international trade forums when its own enforcement record is questioned
By adopting the ILO's own definition of forced labour into the amended FTP, India signals alignment with international labour standards while building a domestic legal basis to counter the US allegation that it lacks an import prohibition mechanism.
US Section 301 Investigation and India's Trade Policy Response
Section 301 of the US Trade Act, 1974 empowers the US Trade Representative (USTR) to investigate and act against foreign trade practices deemed unfair or discriminatory, including failure to prohibit or enforce action against forced-labour-linked imports. In March 2026, USTR initiated Section 301 investigations against 60 trading partners on this issue; by June 2026, it found that a majority — including India — had failed to impose or effectively enforce a legal prohibition on forced-labour-linked imports, and proposed tariffs in the 10-12.5% range on their goods pending a compliance window.
Key Details
- Section 301 investigations initiated: 12 March 2026, covering 60 economies
- USTR findings announced: 2 June 2026 — 54 economies found to have no legal import prohibition on forced-labour goods (India among them); 6 economies found to have a prohibition but weak enforcement
- Proposed USTR tariff range for non-compliant economies: 10% to 12.5%
- India has separately flagged the US approach as inconsistent and sought exemptions for around 1,600 tariff lines it considers essential imports
- The FTP amendment is India's direct legal-framework response, intended to demonstrate compliance and avoid or mitigate the proposed Section 301 tariffs
The timing of India's FTP amendment — closely following the USTR's June 2026 Section 301 findings — indicates it is a targeted policy response designed to close the specific compliance gap (absence of a legal import-prohibition mechanism) identified by the US investigation.
- FTP amendment notified via DGFT gazette notification dated 13 July 2026; effective 30 days after publication
- Legal basis: Foreign Trade Policy, 2023 (amended); definition of forced labour aligned with ILO Convention No. 29 (1930)
- India ratified ILO Convention No. 29: 30 November 1954
- Article 23 of the Constitution (Part III): prohibits traffic in human beings, begar, and forced labour
- USTR Section 301 investigations covered 60 economies; 54 (including India) found to lack a legal import prohibition on forced-labour goods
- Proposed USTR tariff range on non-compliant economies: 10% to 12.5%
- India has sought exemption for around 1,600 essential import tariff lines from the US forced-labour tariff proposal