apple inc AAPL and its Taiwanese production partner Hon Hai Precision Industry Co.,Ltd HNHPFbetter known as Foxconnwere reportedly among the companies that successfully lobbied for labor law changes in Karnataka, India.

What happened: The development means that two-shift production can now take place in the southern Indian state, similar to what is practiced in China – the main production site for the two companies. reported Financial Times, citing three people familiar with the matter.

Last week Karnataka reportedly changed its factory law allowing 12-hour shifts previously limited to nine hours. It also allowed women to work night shifts.

“India is set to become the next major manufacturing hub,” an Indian government official said, according to the report.

“If we compare India to other countries . . . We need to significantly increase our efficiency in terms of increasing work output.”

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Why it matters: The law change will give Karnataka one of the most flexible working hours in India as the country pursues its ambition to become one alternative production center to Chinanoted FT.

India’s central and state governments are reportedly offering incentives to investors in electronics and other sectors to lure them away from China.
Foxconn operates an iPhone factory in Tamil Nadu and has talked about expanding operations in Karnataka, but has not said if it plans to manufacture for Apple there. Apple’s smartphones are also assembled by Taiwanese companies Pegatron and Wistron in India.

Price promotion: Apple shares closed 1.5% lower at $150.59 in the regular session on Thursday, down 0.1% in after-hours trade Data from Benzinga Pro.

Continue reading: Apple is adding another iPhone maker in India to ramp up production outside of China