India’s exports of solar panels, electronics and garments to the United States may face closer scrutiny under a new US investigation into forced labour in global supply chains.

The focus is likely to be on products that use imported inputs from China suspected of being made with forced labour. If such inputs are used in goods exported from India to the US, those shipments could come under investigation.

On March 12, 2026, the Office of the United States Trade Representative (USTR) announced Section 301 investigations under the Trade Act of 1974 into forced-labour practices covering 60 economies, including India, China, the European Union, the United Kingdom, Japan, Canada, Australia, Mexico, Brazil, Vietnam, Bangladesh, Cambodia and Pakistan.

The probe will examine whether countries allow goods made with forced labour to enter global supply chains. It will look at two situations: where forced labour is used directly in production, and where countries import inputs made with forced labour from other countries and use them to produce goods that are later exported to the United States.

For advanced economies, the investigation will examine whether their laws effectively prevent the import or sale of goods made with forced labour elsewhere in global supply chains.

The US argues that if such goods enter international trade through third countries, they can still distort markets by lowering production costs and undercutting legitimate producers.

The Section 301 process normally includes public consultations, evidence gathering and hearings before the USTR decides whether action is required. If the investigation concludes that a country’s policies are “unreasonable or discriminatory” and restrict US commerce, Washington could impose tariffs or other trade restrictions on imports from the countries involved.

China Likely To Face Closest Scrutiny

China is likely to be central to the probe because of long-running accusations involving Uyghur and other Muslim minorities in the Xinjiang Uyghur Autonomous Region.

Governments and human-rights groups say labour-transfer programmes move workers into farms and factories linked to export supply chains. Beijing rejects the allegations and says the programmes are designed to provide employment and vocational training.

International investigations have linked Xinjiang labour programmes to industries such as cotton farming, textiles, apparel manufacturing, tomato processing and polysilicon used in solar panels. The issue prompted the United States to enact the Uyghur Forced Labor Prevention Act, which presumes goods linked to Xinjiang are made with forced labour unless importers prove otherwise.

Several Chinese products have therefore been flagged as high-risk in global supply chains, particularly cotton and cotton textiles—as Xinjiang produces about 20% of the world’s cotton—and polysilicon used in solar panels. Other goods under scrutiny include tomato paste and processed foods, garments, fabrics, electronics components, cables, peppers and garlic.

Countries such as Myanmar and North Korea are also expected to face scrutiny because of long-standing allegations of forced labour linked to state authorities or armed groups.

Risks For India

While India prohibits forced-labour under the Bonded Labour System (Abolition) Act, 1976, it could still face investigations because many Indian export industries rely on imported intermediate inputs from China.

For instance, India’s solar panel exports to the US often rely on imported polysilicon or solar cells sourced from Chinese supply chains, some of which have faced scrutiny over alleged forced labour in Xinjiang.

Similarly, electronics manufacturing in India depends heavily on Chinese components, cables and sub-assemblies, which could face investigation if they originate from regions linked to labour-transfer programmes.

In the textile and garment sector, Indian manufacturers frequently use Chinese yarns and fabrics, which may become subject to tighter traceability rules if linked to cotton produced in Xinjiang.

Because the United States is a major market for solar equipment, electronics and garments, Indian exporters may face higher compliance costs and stricter documentation requirements as US authorities demand detailed proof of the origin of inputs used across supply chains.

US Investigations

In March 2026, the Office of the United States Trade Representative (USTR) launched two new probes under Section 301 of the Trade Act of 1974.

The first, announced on March 11, examines whether industrial policies in 16 economies have created excess manufacturing capacity that harms US industries. The second, announced on March 12, investigates whether about 60 economies have failed to prevent goods made with forced labour from entering global trade. India is named in both probes.

With earlier tariff strategies constrained by legal rulings, Washington appears to be turning to investigations to rebuild leverage in trade negotiations. The move may also be intended to discourage countries from walking away from trade deals negotiated with the Trump administration after those agreements lost value following the February 20 US Supreme Court ruling.