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India’s Hidden Workforce: Inside the Growing Crisis of Forced Labour Amid the $5 Trillion Economy Dream

Summary

  • Millions of Indian workers face wage theft, no contracts, and dangerous conditions, meeting UN ILO criteria for forced labour.
  • Women and migrant workers in industries like steel, seafood, garments, and agriculture are disproportionately affected.
  • Labour law reforms and dwindling job opportunities have weakened protections, deepening exploitation in India’s unorganised sector.

Building India, Breaking Its Backbone: The Workers Behind the $5 Trillion Dream

Under the din of development and industrial growth, India’s unorganised workers remain invisible. Men like Ravi Kumar Gupta, who risks his life near a steel furnace in Maharashtra’s Tarapur Industrial Area, and women like Sumitha Salomi, a shrimp peeler in Kakinada, stand as painful reminders that the country’s economic engine is fuelled by exploited labour.

As Prime Minister Narendra Modi markets India as a $5 trillion economy-in-waiting, global investors are wooed with tales of reform and ease of business. Yet, millions like Ravi and Sumitha operate under conditions the UN’s International Labour Organization (ILO) defines as forced labour—no contracts, withheld wages, denied leave, unsafe environments, and constant surveillance.

These aren’t isolated cases. This is a system—one meticulously engineered through middlemen, weak law enforcement, and informal hiring practices—to maximise output while minimising responsibility.

The Real Cost of Labour: No Contracts, No Breaks, No Choice

  • Ravi earns $175/month, below India’s per capita average, with delayed payments and no paid leave.
  • Works 30 days a month, no weekly off, no salary slip, no safety gear.
  • Any absence reclassifies workers as “new,” erasing service benefits like gratuity and PF.
  • Shrimp workers like Sumitha and Minnu face restricted movement, no health benefits, and unpaid overtime.
  • Jobs offered via contractors with no enforceable written terms.

Ravi’s greasy jeans and tattered slippers are more than just attire—they’re a uniform of helplessness. He supports a family back in Uttar Pradesh, including two daughters, an ill father, and a rain-hit farm. “The land no longer feeds us,” he says, summing up a story shared by countless climate-displaced workers.

Sumitha earns less than $5 a day in a Kakinada shrimp factory that exports to the U.S. She works through severe menstrual pain, gets no payslip, and remains silent, fearing she’ll be fired. “If I ask questions and get thrown out, what then?” she asks, echoing a sentiment that defines India’s invisible labour economy.

A Nation of Invisible Workers: Exploitation in Every Sector

  • Over 390 million workers are in India’s unorganised sector, with no protections.
  • ILO India Employment Report 2024: 90% of India’s workforce is informally employed.
  • India has the highest number of people in modern slavery globally—11.05 million, says Walk Free Foundation.
  • Government data shows only 12,000 bonded labourers rescued between 2016–2021, against a target of 18 million.
  • Textiles, cotton farms, and seafood exports are among sectors with routine forced labour practices.

India’s garment industry alone employs 45 million, mostly women, with widespread reports of sexual harassment, unpaid overtime, and physical abuse. In Tamil Nadu’s textile hubs, Thivya Rakini of TTCU confirms “forced labour is systemic, not sporadic.” A recent Transparentem report on cotton farms in Madhya Pradesh uncovered child labour and pesticide exposure.

These workers aren’t trapped by chains—they’re ensnared by debt, fear, and systemic neglect. Even prestigious jobs aren’t immune: IIT graduates are struggling with job placement, as India’s private investment hits a 3-year low and FDI dips by 5.6%.

Labour Law Reforms or Rights Rollback?

  • India’s four new labour codes consolidated 29 laws but are not yet implemented nationwide.
  • The minimum requirement for union registration has increased, weakening collective power.
  • Over 1,200 compliance provisions cut to 479, raising fears of a business-over-workers model.
  • Santosh Poonia of India Labour Line warns of worsened conditions if worker rights remain sidelined.
  • Supreme Court lawyer Sanjay Ghose says the real problem is non-implementation, not policy design.

While the government promotes these reforms as “modernising,” unions argue they’re pro-employer and anti-worker. The new codes, by demanding more members to register unions, directly dilute the right to organise, a core safeguard against labour abuse.

As unemployment rises and job creation stagnates, workers—educated or not—are settling for any wage, under any conditions. “Exploit or starve” has become a common policy across sectors. And with no national registry of violations, accountability remains elusive.

Final Reckoning: The Cost of Growth Without Justice

India’s aspiration to be a global economic powerhouse risks collapse if built on the backs of voiceless workers like Ravi, Sumitha, and Minnu. Their daily struggles—wrapped in grease, silence, and hunger—reveal a country that’s economically ambitious but ethically adrift.

The disconnect between boardroom promises and shop floor realities is growing. Ease of business should not come at the cost of erasing labour rights. Every unprotected worker, every unpaid hour, and every suppressed voice weakens the very foundation of India’s growth story.

For India to truly rise, its workers must rise with it—protected, paid, and empowered. Until then, the economy’s glitter hides a dark undercurrent: one not of prosperity, but of pervasive, concealed forced labour.

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