Induction motors are widely used due to their rugged, robust and easy to care features. Since they are heavily used in industry, testing of three phase induction motors have play a vital role. In order to determine motor equivalent circuit parameters, efficiency of motor, squirrel caged laboratory sized an induction motor test setup is prepared. It is suitable for the induction motor with the frame size of 100 and 112. A virtual Instrumentation typed engineering workbench (called as LabVIEW) software packet, is utilized as a graphical user interface program. Motor input power is measured by measuring the input voltage, current and power factor with the help of hall effect typed voltage and current transformers. Also, the output power is measured by measuring the speed and torque with the help of an encoder and torque sensor. All outputs of the voltage and current transformer, encoder and temperature, torque sensors are given to the Data Acquisition Card (DAQ) which acquires the data for processing and then the equivalent circuit parameters, efficiency, performance and loading characteristics are found out, using LabVIEW based user interface. It is suggested to use this test rig for the quality control of produced motors in industry, and an educational experiment setup in the school laboratories.