The profitability of bonded labour: The gem‐cutting industry in rural South India

The system of debt bondage in the gem‐cutting industry of South India is considered. Evidence is examined from intensive field work in villages in Tamilnadu, and one large village in particular, which has been a major centre in the synthetic gem‐cutting industry for 70 years. It is argued, against various authors, that here bonded labour is not a pre‐capitalist relation of production. Rather, it is part of a dynamic, capitalist small‐scale industry that is rapidly expanding into global markets. Moreover, since 1990 a dramatic change is noted in part of the industry: the introduction of semiautomatic machinery, with which a new product (the American diamond) is made. This has led, inter alia, to the displacement of women workers. The profits earned by employers, the nature of relations between employers and workers, and especially the use of kinship ideology, and the relevant inter‐connections are explored.