India's Industrial output contracts 2.2 percent in June

India's industrial output contracted by 2.2 percent in June, as against a deceleration of 2.0 percent in the corresponding month of 2012, owing to a slump in production in major sectors like mining and manufacturing, government data showed Monday.

The factory output, measured in terms of Index of Industrial Production (IIP), had contracted by 1.1 percent in April-June quarter of the current financial year, according to data released by the Central Statistics Office.

Mining output in July declined by 4.1 percent from a deceleration of 1.1 percent in the corresponding month last year. Mining output in May had declined by a massive 5.7 percent.

Manufacturing production registered a deceleration of 2.2 percent during July from a fall of 3.2 percent in the corresponding month of last year. In May, the sector's output contracted by two percent.

The electricity sector remained stagnant with no gains in productivity, from an increase of 8.8 percent in July, 2012. In May, the sector had registered a healthy increase of 6.2 percent.