India is strengthening measures to combat forced labor in its supply chains amid a US investigation into forced-labor policies in several countries.
Revised import rules empowers the Director General of Foreign Trade to investigate, on its own initiative or based on credible information, whether goods imported into India were produced, wholly or in part, using forced labor, according to a Commerce Ministry notification dated Monday.
If it concludes that forced labor was used, the Director General of Foreign Trade may recommend prohibiting the import, according to the amended procedures.
The US Trade Representative last month determined that India and several other countries had failed to adequately prohibit and enforce bans on imports made with forced labor. Goods from those countries face additional US duties of 10% or 12.5%.
India pushed back against the finding at a public hearing, arguing that Washington had failed to provide evidence that the country lacked adequate policies to prevent forced labor.
This week’s notification signals that India is strengthening its domestic legal framework in line with international standards, a move that could bolster its position in future trade negotiations, said Ajay Srivastava, founder of the Delhi-based think tank Global Trade Research Initiative.
“It is a sensible first step, but its credibility will ultimately depend on enforcement,” he said. “The real challenge is proving that a product is made with forced labor when production spans multiple countries and opaque supply chains.”
India and the US continue negotiations on a trade pact. While both sides have expressed optimism about concluding a deal soon, New Delhi has yet to secure an advantage over regional competitors.
India currently faces a 10% US tariff on its exports, a rate that is set to expire on July 24.
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