biased), two sets of estimates have been computed separately using gross capital formation as well as net capital formation, THE RESULTS The various combinations of functional forms with different gestation lags, with and without stable regression co-efficients tor each sector were tried. The estimated regression equations of a specification of investment given by equation (7), worked out using gross capital formation as function of gross value added at 1970-71 prices with appropriate gestation lags are given in Table 3. For agriculture sector an appropriate variable was used to adjust the effect of fluctuations due to weather etc. The regression fit is not insignificant for most of the sectors, viz, agriculture, forestry, fishing, manufacturing, mining and quarrying, electricity, etc, other transports, communication, trade, etc, banking and insurance, real estates, etc and public administration, etc.