Indian suppliers to GAP, a European and US apparel retail chain, have informed the Centre that they are not using child labour and their plants have been subjected to vigorous inspections by the overseas buyers.

"The biggest suppliers have informed us that GAP officials have seen their plants and applauded their manufacturing practices," Commerce and Industry Minister Kamal Nath said at the Fortune Global Forum in New Delhi on Tuesday .

GAP has withdrawn from their European and American stores garments sourced from Indian vendors on the ground that child labour was involved in the manufacturing of these clothing. Denying these charges, the Indian government has warned Europe of possible retaliatory steps.

"I am seriously concerned over these reports. There would be pressure on the Indian government to take retaliatory measures," Nath said.

He said the reports about the Indian textile industry using child labour and abusing human rights were motivated. Last week, Nath had raised this issue with the trade Ministers of Finland and the Netherlands condemning these "motivated campaigns".

He had said some of the NGOs spreading this campaign were funded by European governments, which was a matter of concern for India. He said India would treat actions based on these reports as non-tariff barriers being resorted to by the developed world.

"We are treating this as a non-tariff barrier and I have written a letter to European Trade Commissioner Peter Mandelson," he said.