Poor performance by manufacturing, mining and power sectors and a decline in production of capital goods dashed hopes of a recovery as industrial production contracted 2.2 per cent in June.
Factory output measured in terms of the Index of Industrial Production (IIP) had contracted 2 per cent in June last year, as per the data released by the Central Statistical Organisation.
Meanwhile, factory output for May was revised downwards to a decline of 2.82 per cent from a provisional 1.6 per cent dip in production.
During April-June this year, factory output contracted 1.1 per cent, down from a decline of 0.2 per cent in the same period last fiscal.
The manufacturing sector, which constitutes over 75 per cent of the index, contracted 2.2 per cent in June compared with a 3.2 per cent drop a year earlier. During April-June, the sector saw a decline of 1.2 per cent compared with a contraction of 0.8 per cent in the period last year.
Mining output declined 4.1 per cent in June, compared with a dip of 1.1 per cent. In April-June, the sector declined 4.5 per cent compared with a contraction of 1.6 per cent.
Power generation was flat in June compared with a growth of 8.8 per cent in same month in 2012. Power generation in the first quarter grew 3.5 per cent compared with an expansion of 6.4 per cent.