Bonded Labour in India, Government Initiatives and its Impact

Context: On May 1, while the world celebrates Labour Day to respect workers and their rights, the lives of millions trapped in bonded labour in India show a darker side of reality.

Key Factors Contributing to Bonded Labour in India

• Poverty and Economic Shocks: Sudden financial needs like medical emergencies, dowries, or food shortages force workers to take exploitative loans, pushing them into bondage.
  • Eg., A person from Shivpuri (M.P.) took a ₹500 advance and was trafficked 1,400 km to Karnataka, ending up in brutal bonded labour on a sugarcane farm.
• Social Discrimination and Exclusion: Caste, ethnicity, and religious bias deepen marginalisation, increasing vulnerability to exploitation.
• Lack of Education and Awareness: Illiteracy and poor legal literacy prevent workers from understanding their rights or seeking help.
• Informal Employment and Employer Monopolies: In informal sectors, employers dominate local labour and credit markets, using this power to exploit workers.
• Migration and Climate Stress: Migration driven by climate change and rural distress leads to informal, exploitative jobs in urban centres without social security.

Also Read: Central Sector Scheme for Rehabilitation of Bonded Labourer

Impact of Lack of Unionisation on Unorganised Workers

• No Platform for Collective Bargaining: Without trade unions, workers cannot collectively demand fair wages, safe working conditions, or reasonable hours.
• Greater Risk of Exploitation and Abuse: In the absence of union backing, workers are more prone to physical abuse, wage delays, and sudden termination.
  • Eg., A family from Andhra Pradesh, trapped in a brick kiln, suffered beatings and verbal abuse, with no one to intervene or advocate for them.
• Low Awareness of Rights and Entitlements: Many workers remain unaware of their legal rights and available welfare schemes due to illiteracy and a lack of representation.

Government Initiatives to Abolish Bonded Labour in India

Bonded Labour System (Abolition) Act, 1976

• Legally abolished the practice of bonded labour in India.
• Declared all bonded debts null and void and mandated the release and rehabilitation of labourers.

Centrally Sponsored Scheme for Rehabilitation of Bonded Labour (1978, revised 2016)

• Provided financial assistance for rehabilitation.
• Revised in 2016 to raise financial assistance to ₹1 lakh–₹3 lakh per person, depending on the severity of exploitation.

Draft National Policy on Rehabilitation of Rescued Bonded Labourers (2016)

• Envisioned a 15-year target (till 2030) to rescue and rehabilitate 1.84 crore bonded labourers.
• Included provisions for temporary shelter, legal aid, and skill development.

Role of Vigilance Committees

Mandated under the 1976 Act to be formed at district and sub-divisional levels for identification, release, and rehabilitation.

Outcomes and Shortfalls

• Poor Implementation and Rescue Rates: Only 12,760 labourers were rescued between 2016–2021, despite a target of 84 crore.
  • To meet the goal by 2030, 11 lakh rescues/year were required—clearly unachievable at the current pace.
• Underreporting and Lack of Reliable Data: Many states report zero bonded labourers, despite ground realities contradicting these claims.
  • No nationwide database exists to track cases effectively.
• Weak Vigilance Mechanisms: Vigilance committees often exist only on paper or are inactive due to bureaucratic apathy.
• Inadequate Rehabilitation Support: Financial assistance is delayed or denied; rescued workers often relapse into bondage due to a lack of livelihood alternatives.
• Exclusion of Informal Forced Labour: Millions in the informal economy face conditions akin to bondage but are not recognised under current rescue policies.

Way Forward

• Strengthen Rescue Mechanisms: Improve coordination between state and central authorities.
• Extend Social Protection: Provide unorganised workers with insurance, healthcare, and maternity benefits.
• Revive Trade Unionism: Empower informal workers through local unions and legal awareness campaigns.
• Boost Rural Employment: Reduce migration by expanding MGNREGA, rural skilling, and climate-resilient jobs to address the root causes of bondage.
• Data-Driven Policy Action: Update bonded labour estimates and include informal forced labour indicators in national labour statistics.

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