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Indian updates
DGFT notifies procedure for determination of use of forced labour in the production of imported goods (13 Jul)
The Directorate General of Foreign Trade has amended the Foreign Trade Policy 2023 to introduce a framework enabling the prohibition of imports of goods produced or manufactured using forced labour. As part of this amendment, the Foreign Trade Policy now incorporates the definition of "forced labour" contained in the International Labour Organization (ILO) Convention No. 29 (Forced Labour Convention, 1930). ILO defines forced or compulsory labour to mean all work or service which is exacted from any person under the menace of any penalty and for which the said person has not offered himself voluntarily.
The amendment reflects India's commitment to promoting ethical trade and responsible sourcing while responding to the increasing global focus on eliminating forced labour from international supply chains. Several major jurisdictions, such as the United States, the European Union, Canada, and the United Kingdom, have strengthened their regulatory frameworks to restrict the import of goods linked to forced labour. Importers are now encouraged to implement robust supplier due diligence procedures, obtain declarations regarding compliance with labour standards, assess suppliers based on geographic and sectoral risk, and maintain appropriate documentation demonstrating that imported goods are free from forced labour.
Amendment in import policy of Suspension Grade PVC Resin temporarily restricting imports below the notified price (24 Jul)
The import of suspension grade PVC Resin (S-PVC) falling under ITC (HS) code 39 04 1020, having CIF Value of less than or equal to USD 0.766 per kilogram is "Restricted" for a period of six months with immediate effect. However, the restriction will not be applicable for import by 100% Export Oriented Units (EOUs), units in the SEZ and imports under the Advance Authorisation Scheme, subject to the condition that the imported inputs are not sold into the Domestic Tariff Area (DTA).
Global updates
Eighth trade policy review of India (21 Jul and 23 Jul)
On 23rd July 2026, the WTO Secretariat published its trade policy review of India. This is the eighth trade policy review of India. In its report, WTO noted that in the post-COVID-19 pandemic period, India was consistently the fastest-growing G20 economy. Supply of services was the largest contributor of overall economic expansion of the country, accounting for 53.6% of GDP in the first half of financial year 2025-26.
India recorded a strong average annual growth of about 17.3% in digitally delivered services between 2021 and 2025, as per the WTO report, with estimates stating that India ran a digitally delivered services trade surplus of more than USD 200 billion in 2025. The launch of the India Artificial Intelligence (AI) mission in March 2024 underscored the Government's focus on emerging digital technologies.
The WTO noted that during the review period, India took steps to make the economy more outward-oriented which included the launch of a new Foreign Trade Policy in 2023. To promote exports, India maintained various duty exemption, remission, and rebate schemes. It was noted that the interest equalization on export credit scheme was discontinued in 2024, and in November 2025, the Market Access Initiatives Scheme was integrated into the Export Promotion Mission. India also shifted from Export Processing Zones and Free Trade Zones to Special Economic Zones (“SEZs”). In 2024-25, SEZs accounted for about 21% of India's total exports, including 14% of merchandise exports and 28% of services exports. During the period of review, India remained a significant user of trade remedies. Between 1st January 2021 and 30th June 2025, India notified a total of 226 anti-dumping investigations and maintained a total of 170 anti-dumping measures in force. Nine anti-subsidy investigations were undertaken, and 12 anti-subsidy measures were imposed. India notified amendments to its anti-subsidy measures legislation in 2021. India also notified three safeguard investigations and proposed suspensions of concessions.
In addition to multilateral trading, India entered into various regional trade agreements. Agreements with Australia, the European Free Trade Area, Mauritius and the UAE entered into force during the period of review. India also signed other agreements with Oman and the United Kingdom. At the end of 2025, negotiations had been completed with New Zealand and were close to conclusion with the European Union. Negotiations were also ongoing on new and existing agreements with a broad range of other partners, including the United States.
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