founded. the second main focus of the allsopp review is the stark imbalance between the coverage, timeliness and quality of statistics on the services sector relative to those on manufacturing. suppose you were interested in studying the economic behaviour of the uk textiles industry - which accounts for around one - third of one percent of uk output. the good news is there ’ s plenty of coverage in the national accounts, although you have some decisions to make. are you interested in clothing, or carpets and rugs? and if clothing, are you interested in knitted and crocheted garments … or work wear … or outerwear? … or indeed underwear? each of these has its own data set : the array of sub - categories is truly impressive. however, suppose instead that you were interested in the retail sector, and wanted to know, for example, how much the large supermarket chains have contributed to gdp in recent years, or what inroads they have made into the non - food market. no dice. although the retail sector nowadays accounts for over 5 % of uk output - so it is nearly 20 times the size of the textiles industry - more detailed data are not produced for the uk national accounts. the need for better service sector statistics goes well beyond any interest we might have in detail for its own sake. in the uk, early estimates of gdp rely heavily on measuring output. since the service sector accounts for more than 70 % of uk output, the quality of early gdp estimates is inextricably linked to the quality of service sector statistics. over the past ten years, revisions to services output have accounted for more than half of the average revision to gdp growth ; and around four - fifths of the variance of gdp revisions can be attributed to revisions to service sector growth. indeed, research by bank staff has indicated that the private - sector business surveys may give a better guide to the ons ’ s estimate of service sector output growth two years or more after the event than do the ons ’ s own early estimates. ( in contrast, the ons ’ s early estimates of manufacturing output growth clearly outperform the business surveys as a guide to later estimates. ) the ons is well aware of this imbalance. in fact, it has been at the forefront of developing and improving measures of service sector output : within the oecd only the uk and korea produce a monthly index of services production, the counterpart to the well - established monthly index of production for the industrial sector

would be under increased strain during 2012 – 13 due to higher level of npas. the gross npas of the banking system has increased from 2. 36 percent in march 2011 to 3. 25 percent in june 2012. restructured standard accounts as a percent of gross advances have doubled from 2. 7 percent in 2009 to 5. 4 percent as at june 2012 with substantial increase in restructuring in certain sectors. data indicates that restructuring is largely resorted to in case of industrial sector accounts, particularly, large industries, as against smaller borrowal accounts such as agriculture, micro and small enterprises. the persistently high level of npas and increase in restructured accounts continues to pose a significant constraint on banks ’ abilities to reduce lending rates, thereby, in a sense, penalizing the honest borrowers. corporates need to innovate and embrace technology to improve their productivity and efficiency so that their costs can come down, they remain bis central bankers ’ speeches competitive and continue to service their obligation as borrowers. banks on their part must look to arrest the deterioration in asset quality by adopting better risk management practices like better credit appraisal, closer monitoring of borrowal accounts, greater information sharing among banks and by carrying out elaborate viability studies before restructuring. while npas / restructuring of assets cannot be wished away, they need to be effectively curtailed so as to ensure that the lendable resources of banks are maximized. on its part, rbi has mandated banks to put in place an effective mechanism for information sharing by december 2012 and to sanction ad hoc loans / renewal of loans to new or existing borrowers only after obtaining / sharing the information. lack of enabling environment according to the doing business rankings 2013, india ranks way down at 132 out of 185 countries in the global index of countries in “ ease of doing business ” ; 41 places below china, 51 places below sri lanka and 116 places below taiwan. explosive growth can only be achieved if there is an enabling economic environment. this requires governmental policies for quicker clearances, which encourage business and long term investment. recently, some steps have also been announced to stabilize the government finances and contain fiscal deficits within manageable levels. government has also taken steps to encourage public investment as well as public private partnerships in infrastructure and to tap into available technology and capital from around the world. i firmly believe that for achieving explosive growth, it is imperative that macroeconomic environment stabilizes, inflation and inflation expectations come down to comfortable levels and the twin deficits are