India Prohibits Import of Goods Produced Using Forced Labour under New Trade Policy

The Directorate General of Foreign Trade (DGFT) has amended the Foreign Trade Policy (FTP) 2023 to prohibit imports of goods produced using forced labour. Last Updated: 16-07-2026. This is crucial for UPSC aspirants as it relates to GS Paper 2 (International Relations) and GS Paper 3 (Economic Development).

Key Facts About the Amendment to Foreign Trade Policy 2023

• The DGFT has amended the Foreign Trade Policy (FTP) 2023 to prohibit imports of goods made using forced labour.
• A new paragraph (2.20B) has been added to the FTP, explicitly banning such imports.
• This amendment aligns India’s trade regulations with international standards, particularly in response to a U.S. Trade Representative (USTR) investigation.
• The International Labour Organization’s (ILO) Forced Labour Convention, 1930 (No. 29) definition is adopted.
• The DGFT is empowered to investigate complaints and recommend import restrictions.
• The Central Government can ban specific goods following DGFT inquiries.
• The procedural framework for inquiries will be detailed in the Handbook of Procedures, 2023.

India's Strategic Trade Policy Shift

This amendment signifies a strategic shift in India’s trade policy, enhancing its compliance with global standards and strengthening its position in international trade negotiations. By aligning with the U.S. and other global powers, India aims to bolster its economic and strategic goals, potentially increasing its leverage in the India-U.S. trade deal discussions.

UPSC Relevance

• GS Paper 2: International Relations - India's trade policies and international agreements.
• GS Paper 3: Economic Development - Trade policies and their impact on the economy.
• Prelims Angle: Questions on the definition of forced labour, key provisions of the FTP amendment.
• Mains Angle: Analytical themes on international trade policies and their socio-economic impacts.
• Essay Paper: Topics on global trade ethics and human rights.

FAQ Section

• What is the recent amendment to the Foreign Trade Policy 2023? The amendment prohibits the import of goods produced using forced labour, aligning India’s trade practices with international standards.
• Why is this amendment important? It enhances India’s compliance with global trade norms and strengthens its position in international trade negotiations, particularly with the U.S.
• What are the key features of this policy amendment? Key features include the prohibition of imports made with forced labour, adoption of ILO definitions, and empowerment of the DGFT to enforce these rules.