products' and 15.3 per cent in 'Radio, TV and communication equipment and apparatus'.
India's industrial output contracts
(Reuters) India's industrial output (Index of Industrial Production – IIP) shrank in November after a spurt the previous month, denting hopes of a recovery in economic growth and strengthening the case for an interest rate cut later this month.
The index of industrial production fell 0.1 percent annually in November, data released by the Central Statistics Office showed on Friday, compared with revised growth of 8.3 percent a month ago.
The outturn was even worse than the 0.7 percent growth a Reuters' poll of analysts had predicted for November.
Output was depressed by weak investments as well as the Diwali holiday, which was in November last year, whereas in 2011 it fell in October. Diwali is one the biggest Hindu festivals in India, with many factories shutting for several days.
"The correction in the November headline (industrial production) was largely priced in on passage of festive demand and manufacturers' possibly drawing down on inventories rather than stepping up production towards end-2012," said Radhika Rao, economist at Forecast Pte, Singapore.
Asia's third largest economy is on track to expand at its slowest pace in a decade for the fiscal year that ends in March, weighed down by a combination of weak investment and consumer demand.
December trade data expected to be released later on Friday could add to the misery, as exports, which make up around one-fifth of the economy, have fallen against year ago in the previous seven months.
GDP growth that once looked set to hit double-digits has been stuck below 6 percent for the past three quarters. The slowdown is worrying for the government as it prepares for a series of state elections and a general election due in 2014.
Previously pilloried for his government's inaction as the economy slowed, Prime Minister Manmohan Singh launched a series of reforms late last year to salvage a reputation made as the architect of India's economic liberalization in 1991.
On Wednesday, the government hiked railway passenger fares for the first time in nine years and it is also considering raising subsidized fuel prices.