The United States has placed India and China on watch list for not doing enough to fight human trafficking and claimed that part of the enormous economic growth in the developing countries is being fuelled by bonded labour. The Indian government does not fully comply with the minimum standards for elimination of trafficking, it said but conceded that New Delhi is making "significant efforts" to fight bonded labour. A new report released by the State Department showed Wednesday that the most dismal record is of the US' Persian Gulf friends including Saudi Arabia, Qatar, Kuwait and Oman who complete with Iran, North Korea and Myanmar for failure to stop human trafficking or take action against traffickers. Equally dismal was the record of Sudan, Syria, Myanmar, Cuba, Fiji, Moldova and Papua New Guinea, according to grading done by the annual report. Pakistan and Sri Lanka were somewhat better off as they were placed among countries that do take steps to fight it. In India, the report said, clothing and brick making are two major booming industries in which forced labour, debt bondage and hazard conditions are common. Bracketed with India in clothing sector are Bangladesh, Jordan and Malaysia. Similar conditions exist in shrimp industry in Thailand, it says. For brick making, India and China were bracketed. It slammed China "works and study" Programme where it says children as young as 12 are reportedly subjected to forced labour. They work for long hours under hazardous conditions for low pay and suffer from physical abuse.