sector has declined and the share of the tertiary sector has increased. the reduction in the share of primary sector could partly be attributable to reduction in cutting of forest timber as per the decision of the supreme court. further, there was reduction of agricultural produce due to submerging of land in the wake of the tsunami. the increase in the share of services sector is attributable to enhanced construction activities due to rehabilitation measures and increased government expenditure in the post - tsunami period. the share of industrial sector, however, remained more or less stagnant. as per the available information from the central statistical office ( cso ), in 2009 – 10 the per capita income ( nsdp ) of ani was over 62 per cent higher than all - india per capita income. however, during 2009 – 10, the growth in nsdp of ani decelerated to 2. 7 per cent mainly due to the sharp decline in the growth of the industrial and agriculture sectors. notwithstanding this deceleration in growth, the average annual growth rate improved during the second half of the 2000s to almost 10 per cent from 6 per cent in the first half. the average growth of bis central bankers ’ speeches nsdp of ani generally remained higher than that of the all - india ndp during the period 2005 – 10 ( chart 1 ). table 2 sectoral net domestic product ( at 2004 – 05 prices ) ( in per cent ) bis central bankers ’ speeches the increase in the average growth of nsdp of ani during 2005 – 10 was mainly driven by industrial and services sector. the industrial sector made a sharp recovery from a low growth rate of 1. 5 per cent during the first half of the 2000s to 12. 4 per cent in the second half of the decade. however, it is observed that the growth rate in this sector has remained highly volatile during the entire decade. the agriculture sector witnessed a turnaround from negative growth during 2000 – 05 to a growth rate of 3. 7 per cent during 2005 – 10 ( table 2 ). drivers of growth keeping with the overall trend in the country, the economic activity in the ut is dominated by the tertiary sector and its share has been continuously rising. the share of the primary sector has been declining and the share of the secondary sector in nsdp is static at around 3 per cent. there is hardly any manufacturing activity in the ut which is mostly concentrated in wood processing, and with the present restrictions on the exploitation of forests has led this

capital be the same at international level. third, the authorities have made it clear that they intend to protect all systemically important institutions, endow them with the capital needed to face stress conditions, protect depositors and have the shareholders alone bear any losses. to all intents and purposes banks ’ other creditors are protected against losses. this must be explained with absolute clarity ; it is the only way to drastically reduce the risk premiums that the markets are still demanding on bank liabilities. fourth, it is time to go beyond dealing with the problems inherited from the past and consider how to ensure the availability of credit from now on. recapitalizing banks is necessary to this end, but it is not sufficient ; there is a need to think about new, even unconventional instruments. this last point is especially pertinent for italy, where neutralizing the complex financial instruments whose value has plunged is of limited relevance and finding instruments that directly affect the availability of loans for firms and households is more important. one possibility would be the issuing of public guarantees for the senior tranches of pools of new loans, with a view to reviving an important channel of financing, loan securitization, that has completely dried up today. if banks are able to sell part of their loans on an active and liquid secondary market, they can use the liquidity obtained to reactivate the supply of credit. a scheme of this kind would have to be carefully designed in order to ensure its effectiveness in terms of new lending, give banks a correct structure of incentives and minimize the costs to taxpayers. the originator bank should retain some of the risk, thereby still having the incentive to select creditworthy borrowers ; it should pay a suitable fee for the issue of the guarantee, commensurate with the quality of the underlying loans. limiting the public guarantee to the least risky portion of the pool of securitized loans keeps the state from being assigned an inappropriate role in the assessment of creditworthiness. objective criteria could be established for selecting loans of good quality ( for example, mortgages with a loan - tovalue ratio not above a given limit and loans to small and medium - sized firms backed by the guarantee fund for small and medium - sized enterprises ), so as to encourage subscription of the entire pool of securitized loans by the market and limit the possible cost to taxpayers. some features of the tax treatment of banks and other intermediaries in italy that lack a clear economic logic and produce a competitive