Forced Labour: Are EU–India Supply Chains Ready?

In the video "Forced Labour: Are EU–India Supply Chains Ready?", Rishi Sher Singh, an experienced supply chain practitioner based in India, and Daniel, a legal frameworks expert in Germany, engage in a crucial conversation about how forced labor is rapidly shifting from a superficial compliance checkbox into a critical global trade issue. This transformation is driven by the upcoming EU Forced Labor Regulation, which will apply to all imports, exports, and products made available on the EU market across companies of all sizes, as well as India’s own recently announced import prohibitions on goods produced with forced labor. The experts warn that the era of relying on passive, paper-based questionnaires is coming to an end, requiring companies on both sides of the trade corridor to rethink their legal and operational readiness.

A central focus of their discussion is the complex legal and practical tension between a rigid "zero-tolerance" enforcement model and a collaborative continuous improvement approach. While the upcoming EU guidance exhibits some internal confusion over whether companies must guarantee absolute forced-labor-free supply chains or simply demonstrate robust due diligence, Daniel points out that a zero-tolerance interpretation carries severe unintended consequences. If European buyers react to the regulations by putting immediate termination clauses in their contracts, suppliers are highly incentivized to hide violations and sever trust rather than work toward honest remediation. Instead, the speakers advocate for a continuous improvement mindset where buyers and suppliers work together as honest partners to address localized issues on the ground—such as excessive or unpaid overtime, lack of rest days, and inadequate grievance channels—treating responsible exit only as a last resort.

To successfully operationalize these standards, the experts outline two essential strategies: product-based risk prioritization and authentic worker engagement. Rather than relying on superficial, IT-generated questionnaires that paint an unrealistic picture of risk, large buyers with thousands of suppliers should prioritize their efforts by mapping risk according to specific product categories (such as sugar or cocoa) using upcoming European databases. Furthermore, because forced labor is rarely visible during standard, checklist compliance audits, Rishi emphasizes the absolute necessity of engaging directly with workers. By building trust and speaking directly with permanent, casual, migrant, and female workers about their lived realities, businesses can uncover deep-seated vulnerabilities—such as the withholding of local documents by contractors or climate-induced heat stress—that standard audits routinely miss.

Ultimately, the video serves as an invaluable guide for European buyers and Indian suppliers looking to build resilient, compliant, and ethical partnerships. Rather than imposing top-down compliance burdens that simply inflate the cost of doing business, European enterprises are urged to invest in supplier capability, training, and open dialogue. By visiting suppliers in person, building long-term trust, and explaining the "why" behind these human rights protections, companies can inspire genuine commitment from Indian businesses—many of which are family-run and eager to align with global expectations once they understand the underlying purpose.