Globalization and Structural Adjustment Programmes not only reinforces greater integration in the world economy but is a veneration of the market as the only mediator of efficiency and growth. It has resulted in renunciation of the state responsibility towards the welfare of its citizens. Evidence shows that along with new opportunities, globalisation has led to marginalisation of the poorest and has enhanced inequality and economic insecurity among the poor. The impact of globalization and economic reforms is particularly significant in a diverse and plural country like India, where different communities are placed in a social hierarchy with iniquitous access to production and other assets. Reduction in the social sector services like health, education, other subsidies for poverty alleviation programmes and the introduction of user fees has strong links with the increase in child labour and school dropout rates.