Although evidence indicates the significant incidence of child labor in India, the role it plays in the economy is still considerably unknown. This study used disaggregated labor data and evaluated local and global supply chains to develop the first comprehensive and systematic assessment of Indian child labor involved in the production of commodities consumed worldwide, considering trade between more than 15,000 industrial sectors across 189 countries. Five questions were addressed: Which children are in child labor?; What is being produced with that labor?; Who are the final consumers?; What amount of financial resources would be needed to support these children?; and What would be the increase in labor production costs if adults were to replace children? It was found that of 9,687,688 children in child labor during July 2011 to June 2012, 95% of cases were linked to the production of just 35 commodities. Whereas most of these commodities were locally consumed, as many as 980,084 children (around 10%) worked for exports, more than what is typically assumed. Exports mainly consisted of agricultural and food products, clothing, minerals, and construction materials and were predominantly destined to 26 countries, the United States ranking first. Nonetheless, this study supports the notion that the simple removal of foreign demand will not solve the problem; it is poverty that needs to be addressed. Supporting children with allowances equal to their earnings would require 935 billion Indian Rupees, within a 13-year period. If adult workers were to replace children, total production costs may increase only by around 1%.
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