India has enhanced its foreign trade framework by introducing new measures that promote responsible sourcing and strengthen supply chain integrity through a ban on the import of goods produced wholly or partially using forced labour.
The amendment to the Foreign Trade Policy (FTP) 2023 reflects the country’s continued efforts to align its trade regulations with internationally recognized labour standards while fostering more transparent and sustainable global supply chains. The new provision will take effect 30 days after its publication in the Official Gazette.
Under the revised policy, authorities will be empowered to restrict the import of products found to have been manufactured using forced labour following an inquiry or based on relevant evidence. The updated framework also establishes a formal mechanism for reviewing imported goods, helping ensure greater compliance with ethical sourcing requirements.
To strengthen consistency with global best practices, the policy adopts the definition of “forced labour” under the International Labour Organization’s Forced Labour Convention, 1930 (No. 29). This provides a clear and internationally recognized standard for evaluating labour practices throughout the supply chain.
The updated regulations are expected to encourage businesses to strengthen supplier due diligence, improve supply chain transparency, and promote responsible procurement practices. By reinforcing ethical trade standards, the policy supports greater confidence among international trading partners while contributing to more resilient and sustainable supply chains.
As global markets continue to prioritize environmental, social, and governance (ESG) principles, the new policy positions India to further support responsible trade, enhance supply chain accountability, and create a more sustainable environment for international commerce.
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