Some products going from India to America may now become expensive. America has announced to impose 10 percent additional tariff on some goods imported from many countries including India. The reason for this has been said to be concerns related to forced labour. This decision is considered to be related not only to trade, but also to human rights and global supply chain.

What is forced labor and why is it such a big issue?

Forced labor means making a person work against his will. If a worker is not allowed to leave the job, is forced to work through threats, has his/her passport or documents confiscated, or is forced into a debt trap, it can be considered forced labour. The International Labor Organization (ILO) considers this a serious violation of human rights.

However, merely receiving low wages does not constitute forced labour. For this, there must be clear signs like pressure, control or snatching away freedom.

What will be the impact of 10% tariff on India?

America has placed India in the group of countries on whose some products 10 percent additional tariff will be imposed. Its aim is said to be to motivate countries to strengthen labor standards and transparency in their supply chains.

This may impact export sectors like textiles, garments, leather, gems and jewellery, agricultural products and some engineering goods. Additional duties could make Indian products costlier in the US market, increasing pressure on exporters to keep prices low.

What is the challenge facing India now?

This move is not an indictment of every Indian product or industry, but is part of a broader trade policy. Experts believe that India will have to further strengthen the protection of labor rights, transparency of supply chains and adherence to international labor standards. This will not only reduce the risk of such tariffs in future, but will also increase the credibility of Indian products in the global market.