Foreign firms operating in the giant economies of China and India have an "extreme risk" of being associated with modern forms of slavery, according to a report from Verisk Maplecroft, a unit of Verisk Analytics.

"Companies are heavily reliant on goods and raw materials from India and China," the firm said. "However, sourcing from these countries can come with a substantial risk of association with forced labor."

Like Us on Facebook

There report ranked 198 countries based on the risk level that businesses will be exposed to "slavery, servitude, trafficking in persons and forced or compulsory labor." Researchers also took into consideration the countries' legislation, law enforcement, and reported cases of abuses.

The research found that nearly 60 percent of countries have a high-risk tendency of forced labor in their supply chain. North Korea ranked top followed by South Sudan and Sudan. India and China, which landed on the 15th and 23rd spots, respectively, are the highest ranked major economies, CNN reported.

According to Verisk, forced labor in China is seen in many of its industries, while it is common in India's agricultural and garment sectors.

Both the Chinese and Indian government refused to comment on the report on Thursday when asked by CNN.

The United States and Europe, on the other hand, have no escape as they are also classified under medium risk. While Britain, Denmark, Finland, and Germany are the four major European economies that had low risk of forced labor.

"When countries with the most advanced legislation struggle to completely eradicate slavery, it reveals the challenges governments in less developed regions face," Alex Channer, principal human rights analyst at Verisk Maplecroft, said.

According to the 2016 Global Slavery Index by Walk Free Foundation, an estimated 46 million people worldwide live as slaves; forced to work in factories, mines, and farms; sold for sex; trapped from debt; and born in servitude.

Tagsmodern slavery, Verisk Maplecroft, slavery, Versik Analytics, Economy