The problem of child labour has always rung alarm bells whenever the issue is addressed in the national and international circles. Going by the figures for India, it reveals the magnitude of the problem; declining in terms of numbers but not in terms of intensity of the issue over the years. Estimates for India put the figure for the country around 12.7 million children in the age group of 5-14 years working. Andhra Pradesh accounts for the largest number of child labourers in India. The present study highlights the plight of child labourers in the West Godavari district of Andhra Pradesh. An empirical economic analysis of the child labour problem is the approach adopted herein. Information has been collected from households, employers and child workers separately to gain insight into different aspects of child labour problem. The study revealed that poverty, indebtedness and caste structures reinforce upon each other to sustain the vicious circle. Contradictions were visible when comparing the employers and children's version about different aspects of the labouring conditions. This calls upon public policy to approach the problem in a holistic manner.
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