ELASTICITY OF SUBSTITUTION BETWEEN LABOUR AND CAPITAL ACROSS TWENTY SIX MAJOR INDUSTRIES IN INDIA DURING 2004-05

The magnitude of the elasticity of substitution between labour and capital across twenty six major Industries [Factory Sector] in India has been estimated in the present paper by fitting a Constant Elasticity of Substitution Production Function for the year 2004-05.The empirical results emerged out of the cross section data demonstrate that the estimate of the elasticity of substitution between labour and capital across the major Indian Industries is significantly more than unity implying that substitution possibilities are rather more in favour of labour in the Indian major Industries