Economy · 15 Jul 2026

DGFT forced labour import ban Section 301

With reference to India's recent notification banning the import of goods made using forced labour, consider the following statements:

  1. The notification was issued by the Directorate General of Foreign Trade, aligning India's Foreign Trade Policy with the ILO Forced Labour Convention,
  2. 2. The ban was announced weeks after the US Trade Representative proposed a
  3. 5% tariff on Indian goods following a Section 301 investigation into inadequate forced-labour enforcement.
  4. The European Union and Pakistan faced a higher proposed tariff than India under the same Section 301 action, despite introducing similar domestic measures earlier.
  5. Article 23 of the Indian Constitution, which already prohibits forced labour, was invoked for the first time through this notification to create a trade-law dimension to the prohibition.

How many of the statements given above are correct?

AOnly one
BOnly two
COnly three
DAll four

Tests the ability to correctly track comparative quantitative details across countries in a trade-policy dispute, rather than assuming a uniform or intuitively "logical" outcome.

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About this question

Why in news

The DGFT notified the forced-labour import ban on July 13, 2026, widely read as timed to strengthen India's negotiating position ahead of a pending India-US interim trade agreement and to secure tariff treatment comparable to the EU and Pakistan.

Why for UPSC

This tests whether aspirants can correctly track a comparative tariff detail (India's 12.5% versus the EU/Pakistan's lower 10%) rather than assuming, incorrectly, that non-compliant countries would face proportionally worse treatment across the board.

Prelims summary

DGFT's forced-labour ban aligns India's FTP with ILO Convention No. 29, issued after a US Section 301 probe proposed a 12.5% tariff on India - higher than the 10% tariff facing the EU and Pakistan, who had acted earlier with similar domestic measures.

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