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Debt bondage in India or Bandhua Mazdoori (बंधुआ मज़दूरी) was legally abolished in 1976 but remains prevalent due to weak enforcement by the government.[1] Bonded labour is a system in which lenders force their borrowers to repay loans through labor.[1] Additionally, these debts often take a large amount of time to pay off and are unreasonably high, propagating a cycle of generational inequality.[2] This is due to the typically high interest rates on the loans given out by employers.[3] Although debt bondage is considered to be a voluntary form of labor, people are forced into this system by social situations.[2]
Debt bondage has deep roots in Indian history, dating back to India's colonial days under French and British rule.[4] On a more recent note, according to the 2016 Global Slavery Index, India has the 4th most slaves with 19 million Indians enslaved in some form, including debt bondage.[2] Many Indians enter debt bondage to reduce alternative risks of financial burden and violence.[3] Additionally, the Indian caste system has led to social inequality and corruption which collectively allow this system to persist.[2][5] Agricultural and brick kiln workers, including child laborers, are the main Indians involved in this practice.[6][7] Although the Indian government has committed to awarding compensations for freed workers,[8] most workers face negative consequences such as further inequality and health effects, which often results in these laborers committing suicide.[9][10]
The rise of Dalit activism, government legislation starting as early as 1949, as well as ongoing work by NGOs and government offices to enforce labour laws and rehabilitate those in debt, appears to have contributed to the reduction of bonded labour in India.[11] Additionally, both domestic and international organizations have been involved in the legal and rehabilitation process of ending this practice.[3][9] However, according to research papers presented by the International Labour Organization, there are still many obstacles to the eradication of bonded labour in India.
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