Labour standards in global value chains in India: the case of handknotted carpet manufacturing cluster

India is a major producer and exporter of hand-knotted carpets to the world since the beginning of the British rule over India. Majority of the hand-knotted carpets exported from India are produced in the Bhadohi-Mirzapur region, popularly called as the carpet belt of India. Given deplorable working conditions and very high prevalence of child labour in the cluster, in the mid-1990, four social labels were implemented to improve the labour standards, in addition to slew of labour laws implemented by the state of India. The objective of this study is to explore the prevailing labour standards and effectiveness of social labels in improving labour standards in the hand-knotted carpet manufacturing cluster. This study found that even after the implementation of social labels and slew of labour laws, there had been barely any improvement in the working conditions of carpet workers. The workers continued to be adversely incorporated in the carpet commodity chain. However, realising that there is very little scope of social upgrading in this occupation, many carpet workers have shifted to other occupations. But this study found very few child workers in carpet manufactories in the cluster.