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5.6

weighted score 5.6 · nine dimensions

Country Risk Profile

India

Sourcing risk, regulatory exposure and audit intelligence for India-origin supply chains.

Forced & child labour

6

Cottonseed, garments, rice, and stones listed on ILAB 2024 TVPRA. Child labour in agriculture documented. Improving in formal export manufacturing.

Worker rights & FOA

6

Freedom of association challenges flagged in ILAB 2024. Collective bargaining rights inconsistently protected across states.

OHS & audit transparency

6

Significant variation in OHS standards by state and sector. Audit coverage improving in export-facing factories. Informal economy large.

Food & product safety

5

FSSAI competent authority functional but with capacity gaps. Recurring RASFF alerts for spices, herbs, and rice. Pesticide residue issues documented.

Environmental & regulatory

4

EUDR low-risk classification (May 2025). No active IUU card. Some CITES compliance issues in timber and wildlife trade.

Governance & anti-corruption

7

TI CPI 2024: 38/100. Significant corruption risk in customs, state-level enforcement, and regulatory approvals.

Tariff & preferential access

4

Standard EU GSP beneficiary. Reduced rates on most categories. EU-India FTA negotiations ongoing, not yet in force.

Non-tariff barriers

6

Multiple food categories under enhanced controls per Regulation 2019/1793. Complex import licensing environment. No sanctions.

Supply chain traceability

6

Large informal economy in agriculture and textiles. Multi-tier visibility limited. Growing EcoVadis coverage in export-facing sectors.

Labour & Social Risk

Labour & Social Risk

Bonded labour
Bonded labour (debt bondage) persists in brick kilns, agriculture, stone quarries, and domestic work. The Bonded Labour System (Abolition) Act 1976 is in force but enforcement is uneven.
Informal economy
Over 80% of India's workforce is in informal employment. Informal workers — particularly in agriculture, construction, and home-based manufacturing — are largely outside social compliance audit scope.
Sectors at risk
Garments, textiles, seafood processing, leather, brassware, brick kilns, cotton farming.
ILO conventions
India has ratified ILO C029 and C105 (forced labour conventions) and C138 and C182 (child labour conventions). C087 (Freedom of Association) has not been ratified.
ILAB status
Bricks, cotton, garments, rice, sugarcane, tobacco, and several other goods listed on US Department of Labor List of Goods Produced by Child or Forced Labor.

EU Regulatory Exposure

EU Regulatory Exposure

GSP status
India benefits from EU standard GSP. India-EU Free Trade Agreement negotiations restarted in 2022; no agreement in force.
Food safety controls
Indian food and feed exports subject to EU official controls under Regulation (EU) 2019/1793. Specific products — including certain spices, basmati rice, and seafood — have been subject to elevated control frequencies.
EUDR exposure
Limited direct EUDR exposure. India produces some natural rubber and soya, but is not a major EUDR commodity exporter. Indirect exposure via cotton (not EUDR-regulated).
Pesticide residues
India accounts for a significant share of EU RASFF notifications for pesticide residues in spices, herbs, and sesame. Enhanced controls have been applied periodically.
CSDDD implication
Companies sourcing garments, textiles, or food ingredients from India will need to conduct value chain due diligence under CSDDD from 2027, with particular attention to informal sub-tier suppliers.

Logistics & Supply Chain

Logistics & Supply Chain

Primary export corridor
Arabian Sea → Gulf of Aden → Red Sea → Suez Canal → EU ports
Key transit chokepoints
Bab-el-Mandeb / Red Sea, Suez Canal
Main EU destination ports
Rotterdam, Hamburg, Antwerp, Felixstowe
Typical transit time
20–26 days to Northwest Europe
Scope 3 relevance
Maritime freight from India to Northwest Europe generates approximately 0.6–0.9 kg CO₂e per kg of cargo (sea freight estimate, shorter routing than Southeast Asia)