The objective of this study is to test the hypothesis that the share of wages in net value added will tend to decline in the early stages of industrial development. The data are drawn from the Annual survey of industries. An attempt has been made to examine the trend in share of wages in value added over the period 1961 to 1978-79. The likely impact of capital intensity and ratio of salaried staff to total employees on the wage share has also been assessed. Based on inter-industry data, the cross section studies have been carried out for three different period, viz., 1961, 1971 and 1978-79. It is concluded that the declining trend in wage share could be explained by the increasing trends in capital intensity and the ratio of salaried staff to total employees.