Reply to Commentaries

December 24, 1966 an increase in labour supply can be further corroborated from another angle. If we study the trend in gross capital formation we shall find on the basis of the author's estimate1 that gross investment as percentage to gross agricultural income has varied from 10 per cent during the quinquennium 1935-36 to 1940-41 to 12 per cent during the quinquennium 1955-56 to 1960-61. And even during the last decade ie, 1951-1961 when the investment in public sector was stepped up considerably, the percentage of gross capital formation in the private sector was 89.41 per cent of total gross capital formation in agriculture during the period.