India bans forced labour, inflation at 9.9%

The DGFT has added a new paragraph to the Foreign Trade Policy that bars any goods made wholly or partly with forced labour. The rule takes effect 30 days after Gazette publication and is timed to help India’s defense in the US Section 301 forced‑labour investigation. It also aligns India with EU labour standards.

From July 15, the India‑UK Comprehensive Economic and Trade Agreement eliminates tariffs on 99% of Indian exports, giving labour‑intensive goods like textiles, footwear and marine products duty‑free entry into the UK. The shift levels the playing field against China and may double bilateral trade to $100 billion by 2030.

Wholesale Price Index rose to a 9.9% annual rate in June, up from 9.7% in May, as higher food, mineral oils and basic metal prices pushed the headline. Economists see the surge as near‑peak, but warn that West Asia tensions and a weak monsoon could keep inflation in the 9‑10% band for weeks.

After attacks on two merchant vessels killed and injured Indian crew in the Strait of Hormuz, the government instructed the Directorate General of Shipping to launch a vessel‑by‑vessel dashboard that streams real‑time position, crew strength and welfare data for every Indian seafarer in the Persian Gulf, Hormuz and Oman. Dedicated liaison officers and round‑the‑clock coordination will back the system.

India’s push for a manufacturing boom is hitting a silent crisis: factories can’t find enough workers, even for low‑skill roles. Analysts estimate a shortfall of 10‑12 million workers over the next five years, threatening output targets and prompting firms to scale back orders. The shift toward gig‑economy jobs is siphoning labor away from plants.

BPOs are deploying AI accent translators to mask regional accents, allowing them to hire cheaper staff from tier‑2 and tier‑3 towns. While the tech boosts net‑promoter scores, it strips agents of natural emotives like laughs and whispers, eroding authentic customer interactions.

Draft order to ban paraquat dichloride published July 13 in the Gazette will prohibit import, manufacture, sale, transport, distribution and use nationwide, citing serious health risks and links to suicides. The final notification is likely after Aug 12, forcing farmers to switch to safer alternatives and reshaping India’s agro‑chemical market.

The RBI’s draft circular lets mutual funds, insurance companies and pension funds obtain a single approval to increase their shareholding in any bank up to 10% after the initial 5% acquisition, eliminating repeated clearances. Stake‑holders have until Aug 4 2026 to comment. The move could streamline institutional investment and reshape bank ownership dynamics.