Consequences of Child Labour

In general, the overall contribution of child labour in developing countries is so substantial that whether it would harm the economy is still under continuous debate.

The presence of a large number of child labourers is regarded as a serious issue in terms of economic welfare. It is evident from India ranking at lowest quarter (122th) in World HDI (Human Development Index) rankings; in spite of its rapid economic growth. India compares very poorly against countries with high level of human development on all indicators such as life expectancy, education and per capita income. Bonded or not, when children are working, they are put apart from the necessary education. Moreover, large number of low-paid Child labours lowers India’s per capita income. Their hazardous working condition lowers India’s welfare level too.Furthermore, high illiteracy rate puts long-term economic growth at risk.

Diamond industry

Further information: Child labour in the diamond industry#India

In 1997, the International Labour Organization published a report titled Child Labour in the Diamond Industry, claiming that child labour is highly prevalent in the Indian diamond industry, as child labourers constitute nearly 3% of the total workforce and the percentage of child labourers is as high as 25% in the diamond industry of Surat. The ICFTU further claimed that child labour was prospering in the diamond industry in Western India, where the majority of the world's diamonds are cut and polished while workers are often paid only a fraction of 1% of the value of the stones they cut. Pravin Nanavati, a Surat-based diamond businessman argued that, since high cost diamonds could easily be lost or broken while cutting or polishing, employing a child labourer would mean risking "lakhs of rupees" and “Around 8-10 years back, some western countries deliberately created the impression that child labour is prevalent in the Indian diamond industry" and called the boycottfor monopolising in the sector. The South Gujarat Diamond Workers Association secretary Mohan Dhabuwala, argued that while child labour is highly prevalent in the construction and hotel industries, there are few child labourers in the diamond industry of Surat, less than 1% according to their surveys, mainly because of stern punishments and penalties for violation of child labour laws.

Silk manufacture

Human Rights Watch estimates that at least 350,000 bonded children are employed by the silk industry in India. As per Human Rights Watch, children as young as five years old are employed and work for up to 12 hours a day and six to seven days a week. Children are forced to dip their hands in scalding water to palpate the cocoons and are often paid less than Rs 10 per day.

Domestic labour

Official estimates for child labour working as domestic labour and in restaurants is more than 2,500,000 while NGOs estimate the figure to be around 20 million. The Government of India expanded the coverage of The Child Labour Prohibition and Regulation Act and banned the employment of children as domestic workers and as workers in restaurants, dhabas, hotels, spas and resorts effective from October 10, 2006.

Construction

The misuse of adult labour can be found in the construction industry too. Adults are found in construction of both home and office buildings. In 2011, for the construction of the Asian Games care house, the contractors had employed adults, for they had to be paid more, making it a small issue.

Brick kilns

Each year, thousands of children are rescued from brick kilns, working in awful conditions. Some of the children are actually sold to the brick kiln owners, and are not paid.