Nevertheless, the India welding consumables market will be challenged by several factors. The key restraints on the India welding consumables market are the volatile supply of raw materials and the increasing competition from foreign players. Presently, the India welding consumables market is facing an acute labor shortage, which will further challenge the market.
Welding Industry is not Attractive to the Youth in India
The growth of the welding consumables market in India is directly proportional to that of the nation’s steel industry. According to the India Brand Equity Foundation (IBEF), India is the third largest producer of steel in the world and is expected to become the second largest producer by the end of 2016. This growth of the steel industry in India is attributed to the easy availability of raw materials and cost-effective labor. At present, the welding industry in the nation employs around 2.2 mn people in both the semi-skilled and skilled categories, according to Business Standard.
However, with the expanding India consumables market and steel industry, the demand for a skilled workforce in these industries is projected to rise sharply. The welding consumables market has not been an attractive market for the youth of the nation, both educated and uneducated. This has led to a further scarcity of labor in the industry.
Influx of Foreign Workers Major Highlight of India Welding Consumables Market
The scarcity of both skilled and unskilled workforces in the welding consumables and steel industries is so acute that many project contractors are leaning on foreign workers. Presently, several project contractors in the India welding consumables industry have invested in importing cutting and welding operators from foreign countries such as Russia, China, and various Eastern European nations.
Application-wise, the India welding consumables market is divided into building and construction, power, automobile and transportation, marine, oil and gas, wear plate, and others such as repair and maintenance. The ‘Make in India’ campaign has driven the growth of several manufacturing industries in the country, such as the automobile industry, power industry, and construction industry. However, the lack of skilled labor has become even more prominent in the past few years in these industries.
To overcome the burgeoning issue of the lack of skilled and unskilled labor, the Indian Institute of Welding (IIW) has urged Narendra Modi, the Prime Minister of India, to incentivize skill development programs to attract the youth of the country towards the welding profession.