Bonded Labourer in India

Syllabus: GS1/ Social Issue

In Context

• The recent death of nine-year-old Venkatesh, taken as ‘collateral’ for his mother’s unpaid debt vividly illustrates the harsh realities and enduring challenges of bonded labor in India, despite its legal prohibition.

What is Bonded Labour?

• Bonded labour, also known as debt bondage, refers to a situation where a person is forced to work under coercion due to debt, advance payments, or inherited social obligations, often without defined limits or fair wages. It’s not just an economic issue, it’s a structural denial of human dignity.

Current Landscape and Statistics

• Prevalence: As of 2021, an estimated 11 million people in India were living in modern slavery, the highest number globally.
• Rescue and Rehabilitation Efforts: Between April 2024 and January 2025, approximately 250 bonded labourers were rescued in India. However, in the fiscal year 2023-24, only 468 bonded labourers were rehabilitated against an annual target of 1.3 million, highlighting significant gaps in implementation.
• Dominant Social Groups Affected: Studies consistently show that over 80% of bonded laborers are from historically marginalized Scheduled Caste (SC), Scheduled Tribe (ST), and Other Backward Class (OBC) communities, underscoring the deep-rooted social discrimination.

Constitutional and Legal Framework

• Article 23 of the Constitution prohibits beggar and forced labour.
• Article 21 guarantees the right to life with dignity, which bonded labour fundamentally violates.
• The Bonded Labour System (Abolition) Act, 1976 criminalised all forms of bonded labour, extinguished debt obligations, and empowered District Vigilance Committees (DVCs) for enforcement.
• Rehabilitation Scheme (2016): Envisioned the ambitious goal of rescuing 1.84 crore (18.4 million) bonded laborers by 2030.

Persistence of Bonded Labour in India

• Poverty and Indebtedness: Extreme poverty often forces families to take small advances for survival, trapping them in long-term cycles of debt bondage.
• Caste-Based Discrimination: Marginalized communities, particularly Scheduled Castes and Scheduled Tribes, are disproportionately affected due to systemic social inequalities.
• Lack of Enforcement and Data: Weak implementation of the 1976 Act and inadequate monitoring severely hinder effective rescue and rehabilitation efforts. The vast disparity between estimated cases and actual rescues is a stark indicator of this failure.
• Unregulated Informal Sector: The informal economy, employing 90% of India’s workforce, operates with minimal legal or social protections, creating fertile ground for exploitative practices like bonded labor.
• Policy Gaps: A concerning issue is the denial of the existence of bonded labor by some state governments, which delays rehabilitation and legal action. For instance, Maharashtra reportedly omitted bonded labor from its 40-point program post-Emergency.

Challenges in Eradication

• Underreporting: Many cases go unreported due to fear, lack of awareness, or social stigma.
• Inadequate Rehabilitation: Even when victims are rescued, they often do not receive the full benefits entitled to them, hindering their reintegration into society.
• Intergenerational Bondage: Debts and obligations are sometimes passed down, trapping families in cycles of servitude.

Way Ahead

• Strengthen Legal Enforcement:
  • Establish Special Task Forces at the district level to monitor, identify, and raid bonded labour operations.
  • Ensure strict implementation of the Bonded Labour System (Abolition) Act, 1976, with mandatory FIRs, time-bound trials, and real penalties.
  • Recognise bonded labour as organised crime, and treat employers as traffickers where applicable.
• Standard Operating Procedures (SOPs) and State Action Plans:
  • Mandate every state to adopt a comprehensive SOP for identification, rescue, rehabilitation, and post-rescue support.
  • Ensure regular surveys (as directed by Supreme Court) to map prevalence of bonded labour, especially in high-risk sectors.
• Robust Rehabilitation Framework:
  • Strengthen the Central Sector Scheme for Rehabilitation of Bonded Labourers by:
  • Disbursing immediate financial relief within 30 days of rescue.
  • Linking beneficiaries with livelihood schemes (MGNREGA, PMKVY) and land/housing entitlements (PMAY-G).
  • Ensure issuance of Release Certificates even posthumously to enable families to access compensation and justice.
• Empower Vulnerable Communities:
  • Develop targeted, holistic social protection schemes for vulnerable SC/ST groups, including guaranteed employment, skill training, access to land rights, housing, and formal credit, to break cycles of indebtedness and provide sustainable livelihoods.
• Improve Institutional Coordination:
  • Designate a nodal department in each state for bonded labour with clear roles for Revenue, Labour, Police, and Tribal Welfare Departments.
  • Make District Vigilance Committees (DVCs) active and independent with civil society participation and digital tracking of complaints.
• Technology and Monitoring Tools:
  • Build a centralised digital database of rescued labourers linked with Aadhaar and used for tracking welfare delivery.
  • Launch a 24×7 toll-free distress helpline and mobile app for anonymous reporting of bonded labour.

Source: TH