Child labour is one of the very crucial issues currently confronting India and many other South-Asian countries. According to 2001 Census, India had close to 13 million child labour. Children work for long hours with small wages and are more docile and easier to manage than adults. As a consequence, large number of children lacking in skills and education, grow up as unskilled workers. With no access to quality education, millions of children are left to work, often in dangerous and exploitative conditions. The poverty of the family and lack of education are the most significant factors of child labour. The attempt has been made in the paper to examine the demography of child labour, impact of poverty on child labour and child schooling. It also identifies the rights of children and the initiatives taken by state authorities and NGOs for the protection of the rights of children.