The German law to prohibit forced labour and protect human rights in global business supply chains will have little impact on India's trade with the European country as India already has comprehensive rules to deal with these issues, according to a report by think-tank GTRI.

Germany has banned forced labour and other labour law violations in its supply chains extending within and outside Germany.

The law called the Supply Chain Due Diligence Act (SCDDA), came into effect on January 1 this year.

It applies to firms with more than 3,000 employees. These include German firms and foreign firms doing business with Germany.

This means that it covers a significant number of companies in Germany, and it will likely have a considerable impact on how these companies do business.

Smaller firms will be covered under the law from January 2024.

“The SCDDA may have little impact as India already has comprehensive labour laws prohibiting child labour, forced labour, and workplace discrimination,” the Global Trade Research Initiative (GTRI) said in its report on Monday.

It said India also has minimum wage requirements.

“To ensure effective implementation, it is crucial to raise awareness of labour laws among workers and employers and establish efficient complaint-handling mechanisms,” the report said.

It added that the German law has shifted the onus for identifying risk and taking actions from government to business firms.

The law covers violations of labour laws, child labour, forced...

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