Overtime Rules as Manufacturing Chokepoints

A country's statutory overtime rate and weekly/overtime caps can by themselves raise unit labour costs and extend production timelines enough to deter large, seasonal manufacturing orders. India’s 2x overtime pay and per‑week caps (144 hours/quarter limit) make a simulated 10,000‑unit electronics order take 23% longer and cost ~18% more per unit compared with more flexible regimes. — Labor‑regulation design — not just wages or infrastructure — can be a decisive factor in attracting or repelling factory investment and should be part of any industrial policy and FDI debate.