Ashok Gulati and Seema Bathla (May 19, 2001) have once again raked up the controversy regarding public investment in agriculture and its relationship with private investment and growth. What is however interesting here in their paper is the commendable attempt to re-define and re-estimate the official data on public sector capital formation, with a view to examine: (i) Has the public sector capital formation in agriculture really declined, as is generally made out? If so, what are the factors responsible for it? (ii) Is there any relation between public and private sector investment in agriculture? Do they complement or compete? (iii) How does the deceleration in public sector capital formation affect the rate of growth of agriculture? The purpose of this note is to make a brief comment on (i) and (iii) above, by way of a critique rather than a criticism. As regards (ii), the authors have taken the mainstream view. We do not find any reason not to subscribe to that view.
