Apple and its manufacturing partner Foxconn were among the companies behind a landmark liberalisation of labour laws in the Indian state of Karnataka last month, according to three people familiar with the matter.
Their successful lobbying for new legislation means two-shift production can take place in India, akin to the two companies’ practices in China, their primary manufacturing base. The law gives the southern state one of the most flexible working regimes in India as the country aims to become an alternative manufacturing base to China.
Karnataka’s move is an attempt to seize the opportunity created by companies that are seeking to end an over reliance on Chinese manufacturing, following months of Covid-19 disruption that has shaken global supply chains.
“India is due to become the next big manufacturing hub,” an Indian government official said, who asked to remain anonymous. “When we compare India with other countries . . . we have to increase by a big margin our efficiency in terms of increasing the work output.”
Rajeev Chandrasekhar, India’s electronics and IT minister, said last week that Apple phones would be produced at a new 300-acre factory in Karnataka. Foxconn has not confirmed any factory plans.
The state, a centre for India’s tech industry, last week passed an amendment to its application of the factories act allowing for 12-hour shifts, up from the previous limit of nine hours. It also eased rules on night-time work for women, who dominate electronics...
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