About the Capital Goods - Non-Electrical Equipment Sector
The capital goods industry is one of the most essential requirements for the manufacturing sector's competitiveness and growth. Companies in this sector are engaged in the making of machinery used to manufacture goods and products. The non-electrical equipment segment in the capital goods sector consists of machine tools, construction and mining machinery, textile machinery and process plant, office equipment and parts.
Currently, the sector contributes 12% to the total manufacturing output of the country, while the manufacturing sector overall contributes ~17% to the country's GDP.
Future Outlook of the Capital Goods - Non-Electrical Equipment Sector in India
As of 2021, India was the world's 8th largest consumer of machine tools globally, underlining the country's significance in the industry. The electrical equipment sub-sector leads in the capital goods sector, followed by the non-electrical segment, which contains plant equipment and earth-moving/mining machinery.
With the ongoing 'Make in India' initiative, there's a huge focus on fortifying manufacturing capabilities, bringing the Capital Goods sector to the forefront.
Things To Consider Before Investing in the Capital Goods - Non-Electrical Equipment Sector
- Market demand: Evaluate the demand for non-electrical equipment domestically and globally, considering factors like infrastructure development, government policies, and global economic factors.
- Industry overview: Analyse the current condition of the non-electrical equipment sector. Understand the recent growth patterns, key industry players, and notable technological advancements.
- Technology and innovation assessment: Stay updated on market trends, particularly those concerning the integration of smart technology. Also, the level of technological innovation within companies should be evaluated to gauge competitiveness and strength.
- Political risk: Identify potential risks and challenges confronting the sector, including supply chain disruptions, geopolitical tensions, and adverse economic shifts.
- Regulatory landscape: Examine the regulatory framework governing the non-electrical equipment sector. Remember that regulatory changes can significantly affect a company's performance.
- Environmental and social impact: Check the sector's environmental and social impact by understanding the growing focus on sustainability and corporate social responsibility influencing consumer preferences and regulatory decisions.
How To Invest in Capital Goods - Non-Electrical Equipment Sector Stocks?
Investing in capital goods - non-electrical equipment sector stocks via Angel One is easy. Simply follow these steps:
- Log in to your Angel One account.
- Click on the search icon and look for your desired Capital Goods - Non-Electrical Equipment sector stock.
- Now, place your buy order. Simply click on the ‘Buy’ button, enter your desired quantity, and select the order type.
- To complete your transaction, click on the ‘Buy’ button.
If you don’t have a Demat account with Angel One, you can open one for free online within minutes.
