SEBI, MCA norms on forced labour 'soft and voluntary': India to USTR

New Delhi: India has told the US that tracing forced labour incidents in third countries is not an easy task and its approach has been consistently 'soft' and 'slow.'

As per the transcript of the hearings released by the United States Trade Representative (USTR) of its Section 301 Committee on forced labour, which took place last week, India stated that the Securities and Exchange Board of India's Business Responsibility and Sustainability Reporting framework is a 'soft law'. New Delhi also said that the corporate affairs ministry's National Guidelines on Responsible Business Conduct create a "voluntary framework".

Replying to a query on the actions that India can take in response to violations, New Delhi's representative said: "In our written submission, we very clearly mentioned that the Securities and Exchange Board of India has adopted the BRSR framework, which is not hard law but a form of soft law."


On March 12, the United States Trade Representative began a probe against India and others for failing to take action on forced labour.

"And our approach has been to encourage the industry to go for third-party reports, global certification, traceability systems, and responsible sourcing... And there is another instrument called the National Guidelines on Responsible Business Conduct (NGRBC), that also provides a voluntary framework," India said at the hearing on April 29. India said it "strongly contests the legal and factual basis of this investigation" on three grounds-that the investigation does not satisfy the statutory threshold for self-initiation; that the absence of restrictions on importation of goods made from forced labour does not confer a comparative advantage to Indian exporters; and that it does not establish a burden on American commerce.

"India notes that a unilateral Section 301 action is neither necessary nor appropriate where a comprehensive multilateral framework already exists and where India is an active participant in good standing," India stated as its third argument.

New Delhi also argued that, in addition, the government has been supporting various export promotion councils, which are funded by the government, to identify incidents of forced labour or child labour in third countries and ensure that supply chains are clean.