The Government of India has strengthened the country’s foreign trade framework by introducing specific provisions in the Foreign Trade Policy (FTP) 2023 to prohibit the import of goods produced or manufactured through the use of forced labour.
The Directorate General of Foreign Trade (DGFT), Department of Commerce, Ministry of Commerce and Industry, has issued Notification No. 23/2026-27 dated 13 July 2026, inserting a new Para 2.20B and Para 11.64 in the Foreign Trade Policy, 2023. The new provisions will come into effect after the expiry of 30 days from the date of publication of the Notification in the Official Gazette.
Under the newly inserted Para 2.20B, the import of goods produced or manufactured, wholly or in part, through the use of forced labour is prohibited. The provision empowers the Central Government to specify, from time to time and through notification, the goods whose import will be prohibited on the basis of findings of an enquiry or any other material considered appropriate.
The Notification further provides that the procedure for conducting an enquiry by the Director General of Foreign Trade into the use of forced labour in the production of such goods will be prescribed in the Handbook of Procedures, 2023. The framework therefore creates a formal mechanism for examining cases involving alleged use of forced labour before goods are specifically subjected to import prohibition under the Foreign Trade Policy.
A new Para 11.64 has also been inserted in Chapter 11 of the FTP 2023 to define the term “Forced Labour”. The definition covers all work or service exacted from any person under the menace of any penalty and for which the person has not offered himself or herself voluntarily. The definition has been aligned with the International Labour Organization’s Forced Labour Convention, 1930 (No. 29).
The amendment establishes a clear policy basis for restricting the entry into India of goods linked to forced labour in their production or manufacturing process, including where such labour has been used only in part of the production chain. It also provides the Central Government with a notification-based mechanism to identify and prohibit specific goods based on the outcome of an enquiry or other relevant material.
The measure strengthens the FTP framework by integrating labour-related safeguards into India’s import policy and by providing an explicit statutory policy mechanism to address goods produced through forced labour.
The Notification has been issued by the Central Government in exercise of powers conferred under Section 3 read with Section 5 of the Foreign Trade (Development and Regulation) Act, 1992, read with the relevant provisions of the Foreign Trade Policy, 2023. It has been issued with the approval of the Minister of Commerce and Industry.
The Notification can be accessed at: https://a2ztaxcorp.net/wp-content/uploads/2026/07/Notification-23-eng.pdf
