Shulou(Shulou.com)11/24 Report--

Beijing, March 10 (Xinhua) the Indian state of Karnataka completed a landmark labor law liberalization this month, driven by a number of companies, including Apple and its main contractor Foxconn, according to three people familiar with the matter.

Foxconn's Indian mobile phone factories Apple and Foxconn successfully lobbied Karnataka to pass new legislation to allow two-shift production to take place in India. As India plans to become another manufacturing base, the law makes Karnataka one of the most flexible working areas in India.

Karnataka, the center of India's technology industry, last week passed an amendment to a factory law that allows factories to work 12-hour shifts and women work night shifts. In some parts of Asia, women dominate the electronics production line, but account for a low proportion of the Indian workforce. The legislation limits the maximum working week to 48 hours, but also increases the amount of overtime allowed in three months from the previous 75 hours to 145 hours.

Karnataka's move is also an attempt to seize the opportunity for well-known companies to seek production diversification. "India will be the next big manufacturing centre," said an unnamed Indian government official. "but when we compare India with other countries.... we must be much more efficient in increasing work output."

Rajiv Chandra Seka, India's minister of electronics and information technology, said last week that Apple's iPhone would be produced at a new 300-acre plant in Karnataka. However, Foxconn has not confirmed any plans to build the plant.

Apple's lobbying

Karnataka changed its labour law after listening to a "large number of suggestions" from Indian industry lobbies and foreign companies such as Apple and Foxconn, the Indian official said. Foxconn and Apple declined to comment.

"this is a goal that we and our customers have been pursuing," said one person close to Foxconn, referring to Apple. "this adjustment is essential for building efficient manufacturing on a large scale."

India will overtake China as the world's most populous country this year, making it a promising market that Foxconn can no longer ignore, but there is still a huge gap in the investment environment between India and other regions, the person said. "being able to produce on a 12-hour shift of two shifts a day has taken us a big step towards our goal." The person said.

The Indian government is trying to boost manufacturing, spurred by the "made in India" plan. Manufacturing still plays a small role in India's service-oriented economy. India's central government and state governments are providing incentives to investors in electronics and other industries to attract manufacturers seeking to diversify, particularly in southern India.

Foxconn currently makes iPhone at a factory in Tamil Nadu. The company has said it will expand its operations in Karnataka and neighboring Terengana, but has not yet detailed plans to produce the iPhone for Apple. However, Liu Yangwei, Foxconn chairman, visited Hyderabad in Terengana and Bangalore in Karnataka last week to send a clear signal that Foxconn plans to expand its operations in India.

In addition to Foxconn, Apple also makes iPhone in Indian factories owned by contract manufacturer Pegatron and Weitron.

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