Union Cabinet Approves PLI Plan for Textiles
The Union Cabinet approved a PLI Scheme for textiles on Wednesday, with a budgetary allocation of Rs 10,683 crore over the next five years for MMF apparel, MMF (man-made fibre) fabrics, and 10 categories and other products of technical textiles.
The move aims to make Indian textile more competitive in international markets after giving ground to countries such as Bangladesh and Vietnam. This scheme could garner Rs 19,000 crore of fresh investments over a period of five years and will create employment opportunities for at least 7.5 new jobs.
India has a large supply of MMF fibre and yarn, but it does not produce enough high-quality MMF fabric. As a result of the PLI scheme, India's MMF fabric manufacturing capacity will be strengthened, and the share of MMF-based clothing will increase year after year. With an increase in the MMF segment, the Indian apparel exports are likely to double in the coming two to three years.
RBI Lifts Curbs on UCO Bank
The performance of the UCO Bank, currently under the Prompt Corrective Action Framework (PCAF) of RBI, was reviewed by the Board for Financial Supervision.
It was noted that as per its published results for the year ended March 31, 2021, the bank is not in breach of the PCA parameters. The bank has also provided a written commitment that it would comply with the norms of Minimum Regulatory Capital, Net NPA and Leverage ratio on an ongoing basis. It has also apprised the RBI of the structural and systemic improvements that it has put in place, which would help the bank in continuing to meet these commitments.
Taking all the above into consideration, RBI has decided to lift the curbs on the state-run UCO Bank.
Net Inflows Into Equity MF Schemes Falls 61% in August
Inflows in equity MF schemes skid sharply from Rs 20,742.77 crore in July to Rs 8,056.80 crore in August 2021, as shown in the data released by the Association of Mutual Funds of India (AMFI). However, one should note that it is the sixth consecutive month of positive inflows in equity MF schemes.
This decline on a monthly basis is on account of some profit-booking by retail investors as the Indian Stock market continues its record upward journey.
Overall positive inflows in the open-ended MF schemes and indices touching record highs has helped the Indian MF industry net assets under management to hit a record Rs 36 trillion in August 2021.