The problem of child labour exploitation is a major challenge to the progress of developing countries. Children work at the cost of their right to education which leaves them permanently trapped in the poverty cycle, sadly without the education and literacy required for better-paying jobs. This is particularly serious in India as it tops the list with the highest number of child labourers in the world. The 2001 national census of India estimated the total number of child labour, aged 5–14, to be at 12.6 million.
Out of the 12.6 million, 0.12 million engages in hazardous job. However according to informal labour force statistics, the problem seems to be more severe than reflected. Child labour is estimated to be as large as 60 million in India, as many children are "hidden workers" working in homes or in the underground economy. In the long run, this phenomenon will evolve to be both a social and an economic problem as economic disparities widen between the poor and educationally backward states and that of the faster-growing states. India has the highest number of labourers in the world under 14 years of age.
Although the Constitution of India guarantees free and compulsory education to children between the age of 6 to 14 and prohibits employment of children younger than 14 in 18 hazardous occupations and 65 hazardous processes, child labour is prevalent in almost all informal sectors of the Indian economy. Companies including Gap, Primark, Monsanto and others have been criticised for using child labour in either their operations in India or by their suppliers in India.
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