Answer

Though legally abolished in 1976, bonded labour persists in India’s informal sectors. It reflects deep-rooted socio-economic inequalities like poverty, caste bias, and lack of awareness.
This modern slavery challenges India’s constitutional values of justice, equality, and dignity.

Socio-economic factors perpetuating this practice 

• Poverty and Indebtedness: Extreme poverty compels individuals to accept exploitative loans, leading to debt bondage. High-interest rates and lack of formal credit access trap workers in cycles of debt.
• Caste-Based Discrimination: Lower-caste communities, especially Scheduled Castes and Tribes, face systemic discrimination, limiting their access to education, employment, and justice, making them vulnerable to exploitation.​
  For example: A Human Rights Watch report found that 86.6% of bonded labourers in India belong to Scheduled Castes and Tribes, highlighting the intersection of caste and bonded labour. 
• Lack of Awareness and Education: Illiteracy and lack of awareness about legal rights prevent workers from recognizing and resisting exploitative practices.​
  For example: Many bonded labourers are unaware of the Bonded Labour System (Abolition) Act, 1976, and continue to work under coercive conditions without seeking legal recourse. 
• Informal and Unregulated Labour Markets: The prevalence of informal labour sectors, like brick kilns and agriculture, with minimal oversight, facilitates exploitative practices without accountability.​
• Inadequate Enforcement of Labour Laws: Despite legal provisions, enforcement of anti-bonded labour laws is weak due to corruption, lack of political will, and insufficient resources.
  For example: The International Labour Organization notes that the Bonded Labour System (Abolition) Act, 1976, is poorly implemented, with many cases of bonded labour going unreported and unaddressed.

Effectiveness of government initiative

• Ineffective implementation of rehabilitation schemes: Financial aid under the Central Scheme for Rehabilitation is delayed or denied, weakening reintegration efforts.
• Insufficient monitoring and enforcement mechanisms: Lax enforcement of laws and the failure to form vigilance committees lead to underreporting and unchecked violations.
  For example: NHRC found that several states had not constituted mandated vigilance committees, hindering ground-level monitoring. 
• Lack of comprehensive data and surveys: Absence of systematic and frequent surveys restricts understanding of bonded labour’s real extent and distribution.
  For example: The ILO has emphasized the need for reliable national-level data to design and evaluate policy interventions.
• Need for integrated, multi-stakeholder approach: Current efforts often lack coordination between government, civil society, and grassroots actors, weakening impact.
  For example: The Freedom Fund’s work in Northern India shows that combining legal aid with community programs significantly reduces bonded labour.

Suggest comprehensive reforms

• Strengthen identification, rescue, and rehabilitation mechanisms: Establish proactive district-level surveillance teams and streamline the process for identifying, rescuing, and compensating bonded labourers.
• Ensure time-bound and transparent rehabilitation support: Link rescued individuals to immediate financial assistance, housing, healthcare, and skill development through a single-window clearance system.
  For example: Under the Scheme, financial assistance for rehabilitation of a rescued bonded labourer is Rs. 1 lakh per adult male beneficiary, Rs. 2 lakhs for special category beneficiaries.
• Promote inclusive access to formal credit and employment: Expand self-help groups, MUDRA loans, and MGNREGA to vulnerable communities to prevent debt bondage and provide dignified employment.
• Invest in education and legal awareness in high-risk areas: Launch localized awareness campaigns about bonded labour laws, workers’ rights, and access to legal aid in endemic districts.
  For example: NGOs like Jan Sahas conduct legal literacy workshops in Madhya Pradesh, leading to increased reporting of bonded labour violations.
• Foster convergence between state agencies, NGOs, and panchayats: Integrate efforts of labour departments, social welfare boards, and civil society through joint action plans and monitoring.
  For example: The Odisha government’s joint initiative with civil society groups led to coordinated rescues and sustainable rehabilitation in western districts.

Eradicating bonded labour requires more than legal provisions, it demands systemic reform. A rights-based, community-driven approach with strong enforcement and livelihood support is key. Only then can India uphold its constitutional promise of freedom and dignity for all.

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