Indian Exports Face Scrutiny in New US Forced-Labour Probe

India’s exports of solar panels, electronics and garments to the United States may face heightened scrutiny after Washington launched a new investigation into forced labour in global supply chains, according to Ajay Srivastava of the Global Trade Research Initiative.

On March 12, the Office of the United States Trade Representative opened a Section 301 probe under the Trade Act of 1974, covering about 60 economies, including India, China, the European Union, Japan and Vietnam, to examine whether goods linked to forced labour are entering global supply chains.

The investigation will assess both the direct use of forced labour and the use of imported inputs suspected of being produced under forced labour conditions before being incorporated into goods exported to the United States.

Srivastava, founder of the Global Trade Research Initiative, said the probe could bring Indian exporters under closer scrutiny because many supply chains rely on intermediate inputs sourced from China.

“Indian exports themselves may not involve forced labour, but if the inputs originate from Chinese supply chains under scrutiny, shipments could still come under investigation,” Srivastava said.

India’s solar equipment shipments to the United States could face particular attention because manufacturers often rely on imported polysilicon or solar cells from Chinese supply chains, some of which have been linked to forced-labour allegations in the Xinjiang region, he said.

Electronics exports could also be affected because India’s manufacturing sector depends heavily on Chinese components and sub-assemblies, while garment producers frequently use imported Chinese yarns and fabrics.

“The challenge for Indian exporters will be proving the traceability of inputs across complex supply chains,” Srivastava said, adding that US authorities may require detailed documentation to verify that goods entering American markets are free from forced labour links.

The investigation is expected to include consultations, evidence gathering and hearings before the USTR decides whether action is warranted. If Washington concludes that countries’ policies allow forced-labour-linked goods to enter global trade and distort competition, it could impose tariffs or other trade restrictions.

China is likely to face the most scrutiny in the probe because of long-standing allegations involving labour programmes in the Xinjiang Uyghur Autonomous Region, which Beijing denies.

The move comes amid a broader shift in US trade strategy. Washington this month launched two Section 301 probes, including another investigation into industrial policies in several economies, as it seeks new leverage in global trade negotiations following recent legal constraints on tariff actions.