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