The steel industry is often considered to be the backbone of a country. Development of such an industry provides the yardstick upon which the development of a country is measured. Development of an efficiently functioning heavy steel industry ensures socio-economic well being of a nation and enhances its infrastructural stability. The American and the European countries lead the pack in providing high grade steel for various infrastructure necessities, either within the country or around the globe. These steel fabricating companies employ thousands of workers and generate billions of dollars in revenues. However, as a direct result of the recent economic crunch, the majority of these companies are finding it hard to maintain their business. Their labor costs and other operational costs, more often than not, fail to confine within their allocated budget. This scenario has led to these companies look for other avenues to expand their business and accumulate profit. Their search finally ended when they were able to tap the huge amount of resources and skilled manpower provided by India.
After nearly two decades, many of the world’s steel fabrication companies have established their offshore branches in India. There are many such plants of heavy steel fabrication in Bangalore, it being the hub of industrial growth in the country. Apart from Bangalore, there are also a few plants of heavy steel fabrication in Goa, Chennai and Mysore.
Future of heavy steel fabrication industry in India
The main reason for the sudden rise of popularity in the steel fabrication industry in India can be related to the very cheap labor rates of the country. Although the rates are much lower than any other countries but even in such low rates you get extremely skilled and efficient workers whose quality of work is at par with their American or European counterparts. Moreover, since most of the workers have sufficient grasp of the English language, the steel industry powerhouses prefer India over China. Another factor lies in the fact that the steel industry in America or the European countries have been in operation for hundreds of years, they have almost reached their full maturity, with very little scope of innovation, expansion and all round development. The steel industry of India provides a solution to such problems. The government too have aided in the cause by relaxing the tax laws for such industries, thus, providing the companies with an added incentive to set up their business in India.
Most of the big steel fabricating companies have set up shops in the city of Bangalore. They have established fully operational and highly productive plants for heavy steel fabrication in Bangalore. Together with the plants for heavy steel fabrication in Goa, Chennai and many other Indian cities, provide numerous steel based products and services, here in India as well to many other countries. Many American and European heavy steel fabrication and designing projects are currently done under the supervision of Indian workers. Owing to such global exposure, 20 years of experience and the ever increasing demands has led to these Indian establishments to develop expertise in many complex and critical high grade steel projects including some steel fabrication for EPC projects. This Indian chapter of the steel industry has generated large scale employment for its people, currently employing over 45 million workers and this number is expected to increase up to 90 million by the 2025.