As per this link, there are 1.8 billion children globally (i.e. below 14). India has roughly 250 Million children so around 14% of the world population of children.
There are roughly 250 million child laborers globally of which 11 million are Indian children so around 4.4% of the global child labor population is Indian.
I.e., despite having 14% of the world's kids, only 4.4% are child laborers. I'd say India is moving in the right direction when it comes to child welfare.
Wiki says there are 200 million odd child labourers globally. As per the Indian census of 2011, the number of child labourers in India is way lower than your 160 M figure.
India’s census figures are mostly reliable, unlikely to be off by an order of magnitude.
As a resident Indian, as far as I know (a) children have a guaranteed right to education which keeps them in school until 14 (b) children in fabric sweatshops was never an Indian thing. Children in brick kilns and beedi factories rolling beedis because of their nimble fingers used to be a thing.