India's Unresolved Bonded Labour Crisis: Why Freedom and Rehabilitation Remain Challenging

Key Findings

• According to the National Crime Records Bureau (NCRB) figures cited in the report, India recorded 9,764 bonded labour victims between 2018 and 2024. Uttar Pradesh accounted for approximately 70% of reported victims in 2024, compared with around 80% in 2023.

• Uttar Pradesh, Tamil Nadu, Jharkhand, Gujarat and Karnataka together accounted for more than 90% of reported victims.

• The highest annual number during 2018–2024 was recorded in 2020, with 2,837 victims. 

• Approximately one-third of the people rehabilitated under the relevant scheme during 2018–2024 were in Uttar Pradesh.

• These figures reflect reported cases and should not be interpreted as the actual nationwide prevalence of bonded labour. Under-identification, difficulties in reporting and limited access to administrative mechanisms may affect the recorded numbers.

Structural Causes of Bonded Labour

• Bonded labour is not merely a question of low wages; it involves restrictions on workers' freedom and choices. Poverty, indebtedness, insecure employment and deceptive recruitment practices can expose workers to exploitation.

• Workers may be trapped through wage withholding, coercive advances, threats, inflated debts or restrictions on their movement. Migrant workers are particularly vulnerable when they travel far from their homes, lack written employment agreements or cannot access local grievance-redressal mechanisms.

• A case involving a family recruited from Uttar Pradesh to Telangana, cited in the report, illustrates the interstate dimension of the problem. The family was allegedly underpaid and prevented from returning home after being promised better wages. Such cases underline the need for coordination between the workers' home states and destination states.

Legal and Constitutional Framework

• Article 23 of the Constitution prohibits human trafficking, begar and other similar forms of forced labour. Article 21 protects the right to life and personal liberty, which the Supreme Court has interpreted to include human dignity.

• The Bonded Labour System (Abolition) Act, 1976 abolishes the bonded labour system, extinguishes bonded debts and provides a legal basis for action against bonded labour practices.

• However, the existence of legal safeguards does not automatically eliminate exploitation. Effective enforcement requires timely identification of victims, rescue operations, investigation, prosecution and protection against retaliation.

Rehabilitation and Fund Utilisation

• The Central Sector Scheme for Rehabilitation of Bonded Labourers, 2021 provides immediate financial assistance of up to ₹30,000 to rescued workers. Following prescribed verification, rehabilitation assistance of ₹1 lakh, ₹2 lakh or ₹3 lakh may be provided according to the beneficiary category and severity of the case.

• The report, citing a parliamentary committee, states that only around 6% of the ₹6 crore allocated to the scheme in 2024–25 had been spent by January 2025.

• This figure raises questions about the identification of eligible beneficiaries, the processing of claims, coordination between authorities and the timely delivery of assistance. However, low expenditure alone does not prove that every eligible worker was denied support; the reasons for underutilisation require further examination.

• Rehabilitation must extend beyond financial compensation. Rescued workers may require legal aid, housing, education for their children, skill development, access to welfare schemes and sustainable livelihood opportunities. Without these measures, the risk of returning to debt and exploitative employment may remain.

Way Forward

India needs a coordinated approach that combines prevention, enforcement and long-term rehabilitation. Key priorities include:

• Strengthening labour inspections and monitoring high-risk sectors and recruitment networks.

• Improving coordination between source and destination states for the identification and rescue of migrant workers.

• Ensuring timely investigation, prosecution and protection for victims and witnesses.

• Simplifying rehabilitation procedures and monitoring the actual receipt of assistance.

• Linking rescued workers with housing, education, skill training, social security and sustainable employment.

• Publishing transparent, regularly updated data on identification, rescue, compensation, rehabilitation and repeat exploitation.

Conclusion

Bonded labour is both a labour-rights violation and a reflection of deeper economic insecurity. The concentration of reported victims in Uttar Pradesh highlights the importance of targeted action, but the challenge extends across state boundaries.

The effectiveness of India's response should not be measured solely by the number of workers rescued or the amount of money allocated. It must also be assessed through timely rehabilitation, accountability for exploitation and the ability of rescued workers to secure a dignified and independent livelihood.

MCQ - ENGLISH

Q. With reference to bonded labour in India, consider the following statements:

1. Article 23 of the Constitution prohibits forced labour.

2. The Bonded Labour System (Abolition) Act was enacted in 1976.

3. Low expenditure under a rehabilitation scheme, by itself, proves that every eligible beneficiary was denied assistance.

Which of the statements given above are correct?

(A) 1 and 2 only
(B) 2 and 3 only
(C) 1 and 3 only
(D) 1, 2 and 3

Answer: (A) 

Explanation: Article 23 prohibits forced labour, and the Bonded Labour System (Abolition) Act, 1976 abolishes the bonded labour system. Low expenditure alone does not establish that every eligible beneficiary was denied assistance.