US blacklists India for using child labour

August 10, 2010 09:19

Indian apparel exporters, still reeling under the impact of the global economic downturn, are in for fresh trouble as the United States government has put India among a list of countries that use child labour.

Such an inclusion is not only going to tarnish the image of Indian apparel exporters but can also harm the flow of orders from the US.

India’s current stand that there is no incidence of forced child labour in its garment manufacturing industry is not acceptable to the US government, which has included India along with 28 other countries in the Executive Order 13126 list (EOL) and Trafficking Victims Protection Reauthorisation issued by the US Department of Labor last September. The list includes names of other competing exporting countries like Bangladesh and Pakistan.

The US is the largest importer of apparel from India, and accounts for nearly 75 per cent of the overall apparel exports from the country. Given the sovereign debt crisis in Europe, exporters have been banking on US orders to compensate the EU shortfall.

Though industry insiders are of the view that as of now there will be no major impact, initial estimates suggest there can be 15-20 per cent shortfall in US orders in the medium term.

According to sources in the industry, the inclusion in the lists are an “unsettling stigma” for responsible manufacturers as they are industry-wide and not company-specific allegations.

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