New Delhi: India's industrial output shrunk by 5.1 percent in October after witnessing a sustained slowdown over the past few months, led by a steep fall in production of almost sectors, particularly manufacturing, mining and capital goods.

Factory output, as measured by the Index of Industrial Production (IIP), had grown by 11.3 percent in October last year.

As per data released by the government on Monday, industrial output grew by 3.5 percent in the April-October period this fiscal, as against 8.7 percent in the same period last year.

Output of the manufacturing sector, which constitutes over 75 percent of the index, declined by 6 percent in October, compared to a growth of 12.3 percent in the same month of 2010.

In addition, mining output declined by 7.2 percent in October this year, as against a growth of 6.1 percent in October last year.

Production of capital goods fell sharply by 25.5 percent in the month under review. The segment had grown by 21.1 percent in the corresponding month of 2010.

Output of consumer goods also fell by 0.8 percent during the month under review, as against a growth of 9.3 percent in the corresponding month of 2010.

Furthermore, consumer durables production declined by 0.3 percent, compared to a growth of 14.2 percent in October last year.

During the month under review, output of consumer non-durables fell by 1.3 percent. The segment had expanded by 5 percent in October last year.

In a similar fashion, basic goods production witnessed a 0.1 percent decline in October this year, as against a growth of 9.8 percent in the same month of 2010.

Production of intermediate goods also fell by 4.7 percent during the month, compared to a growth of 9.7 percent in the year-ago period.

However, electricity production grew by 5.6 percent during the month under review, as compared to 8.8 percent growth in October, 2010.

Meanwhile, the IIP growth figure for September this year has been revised upward to 2 percent from the provisional estimate of 1.9 percent.

The decline in industrial production numbers, as per the latest data, suggests continued sluggishness in the economy, experts said.

Last week, the government revised its growth projection for the Indian economy in 2011-12 downward to 7.5 percent from the earlier forecast of around 9 percent in the pre-Budget Survey.

India's economy grew by 6.9 percent in July-September, 2011, the slowest rate of expansion in nine quarters.

India Inc had attributed the slowdown to rising interest rates, which have led to an increase in the cost of borrowing, thus hindering fresh investment.

The Reserve Bank has hiked interest rates 13 times since March, 2010, to tame inflation. Headline inflation has been above the 9 percent-mark since December last year.

(Agencies)