The US has placed India on tier 2 watch list of countries in a report on human trafficking, saying New Delhi is not doing enough to address the issue.
"India is a source, destination, and transit country for men, women, and children trafficked for the purposes of forced labour and commercial sexual exploitation," said the 2009 Trafficking in Persons Report released by Secretary of State Hillary Clinton on Tuesday.
Observing that in recent years, there has been an increase of sex trafficking to medium-sized cities and satellite towns of large cities, the report said India is also a destination for women and girls from Nepal and Bangladesh trafficked for the purpose of commercial sexual exploitation.
There are also victims of labour trafficking among the thousands of Indians who migrate willingly every year to the Middle East, Europe, and the US for work as domestic servants and low-skilled labourers.
India does not fully comply with the minimum standards for the elimination of trafficking, the report said. However, it is making significant efforts to do so.
"Despite these significant efforts, India has not demonstrated sufficient progress in its law enforcement efforts to address human trafficking, particularly bonded labour," it said.