Source: The post India must strengthen efforts to eliminate modern slavery has been created, based on the article “Guardrails against modern slavery” published in “Businessline” on 11th July 2025
UPSC Syllabus Topic: GS Paper1-Social issues
Context: While climate change dominates the sustainability and ESG agenda, the social dimension, particularly modern slavery, remains under-addressed. The article highlights India’s legal framework, international models like the UK’s Modern Slavery Act, and the growing demand for corporate transparency through regulations and audits.
Understanding Modern Slavery in ESG Frameworks
- Social Aspect in ESG Remains Overlooked: Environmental concerns dominate ESG discussions, while social issues like modern slavery get less attention. The term ‘modern slavery’ is rarely used in India but is well-recognized and legislated in countries like the UK and Australia.
- Global Legislative Efforts Against Modern Slavery: The UK’s Modern Slavery Act 2015 consolidated earlier laws and mandates corporate disclosure of anti-slavery efforts. Australia enacted a similar law in 2018. While the EU lacks a unified statute, individual countries like Germany and France have taken legislative action.
- India’s Legal Provisions Addressing Modern Slavery:
India lacks a singular modern slavery law but covers relevant issues under multiple statutes:
- Constitutional safeguards: Article 23 bans trafficking and forced labour; Article 24 prohibits child labour below age 14.
- Bharatiya Nyaya Sanhita: Sections 143–146 criminalize trafficking and forced labour.
- Bonded Labour Act (1976): Abolishes bonded labour with strict penalties.
- Child Labour Act (1986): Prohibits employment of children under 14 and restricts hazardous work for adolescents.
- Other laws: ITPA and Juvenile Justice Act deal with trafficking and exploitation.
Global and Indian Response to Child Labour
- India’s Progress and Gaps in Child Labour Eradication: India still faces challenges in eliminating child labour. A serious case involved 59 minors in a distillery, working long hours with hazardous chemicals. Yet, India avoids the severe forms seen elsewhere like child soldiers or drug mules.
- Role of SDG 8.7: The UN’s SDG 8.7 calls for an end to child labour and modern slavery by 2025. India’s gradual progress reflects the socio-economic complexities where child labour often sustains households.
- Need for Balanced Policy and Social Conscience: Complete prohibition may harm poor families economically. A phased approach, with supportive laws and societal empathy, is essential for sustainable eradication.
Corporate Accountability and Disclosures
- BRSR Requirements for Indian Companies: SEBI mandates large listed companies to submit Business Responsibility and Sustainability Reports (BRSR). Under Principle 5, businesses must disclose complaints and measures related to human rights, including forced and child labour.
- Transparency Obligations Under UK Law: Section 54 of the UK Act requires companies to report anti-slavery steps across all operations and supply chains, including overseas subsidiaries. It also applies to non-UK entities doing business in the UK.
International Influence and Compliance Pressure
- Impact of EU and UK Laws on Indian Companies: The EU’s Corporate Sustainability Due Diligence Directive (CSDDD) imposes obligations similar to UK laws. Indian companies, even if not based in the EU, must comply if they engage in substantial business there.
- Growing Trend of Supply Chain Audits: UK and EU companies increasingly audit Indian firms for modern slavery compliance. These audits are expected to become stricter and more comprehensive.
- Preparing Indian Businesses for Global Standards: To maintain and grow international business relations, Indian companies must proactively align with global due diligence norms. Trade negotiations amplify the urgency for compliance readiness.
Question for practice:
Examine how India’s legal and corporate frameworks are addressing the issue of modern slavery in the context of global compliance standards.
