Poverty can be termed as the main reason for child labor in India. Though the country has achieved commendable progress in industrialization, the benefits of the same have not been effectively passed on to the lower strata of society. The disparities in income have progressively increased more so after the opening up of the Indian Economy from the late 80s. People who had the resources became richer by employing the poor who were readily available as cheap labor. The average earnings of a poor industrial worker is still about 2 dollars per day even in suburban areas around Mumbai and other metropolitan cities of India. In order to keep costs down even large companies employ unorganized workers through contractors who get uneducated and unskilled and semi-skilled people at very low wages.