The cumulative growth for the period April-June 2017 over the corresponding period of the previous year stands at 2 per cent. The data comes at a time when Economic Survey Volume 2 on Friday said that it will be hard for GDP to touch high growth target of 7.5 per cent in the current fiscal as predicted earlier by the government.
Consumer durables output contracted 2.1 percent in June, but consumer non-durables production rose 4.9 per cent.
India's industrial production fell to a four-year low in June as manufacturers reduced inventories ahead of the transition to the goods and services tax (GST) rolled out on July 1, but experts say this one-time shock will reverse as the new tax regime settles down.
Data showed manufacturing contracted by 0.41% in June, from a growth of 2.61% in the preceding month.More news: Guardiola wants Man City to play like Barca - Toure
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The industry group "Manufacture of electrical equipment" has shown the highest negative growth of (-) 20.1 percent followed by (-) 11.1 percent in "Manufacture of fabricated metal products, except machinery and equipment" and (-) 10.5 percent in "Printing and reproduction of recorded media".
The mining sector witnessed a slight acceleration in growth to 0.4%, from 0.2% in May. "On the other hand, the industry group "other manufacturing" has shown the highest positive growth of 28.1 per cent". Similarly, the output of primary goods and intermediate goods during the month declined by 0.2% and 0.6% as against growth of 8.2% and 6% respectively during June previous year.
India Inc expressed grave concern over the fall in manufacturing sector's output and urged for more reforms.
"Besides reforms at the state level, we need to ensure faster development of our infrastructure which is a major enabler of growth and instrumental in reducing the cost of doing business in the country to make our manufacturing competitive".