Mumbai: India's industrial output declined by 7 per cent in October, dragged down by a fall in the capital goods sector, the first time it moved into negative territory since June 2009, according to a report.
"Initial estimates show that industrial production has shrunk by 7 percent. But with more data coming in, the decline may be around 5 percent," the report said.
The government is expected to release the data officially next week, it said.
The industrial sector has been under stress for the past few months, hit by rising interest rates, input costs and stubbornly high inflation.
Industrial growth slowed to a two-year low of 1.9 percent in September hurt by sluggish manufacturing sector growth which has been hit by rising interest rates and a decline in mining output.
Eight core industries, which have a combined share of 37.90 percent in the index of industrial production (IIP.L), grew 0.1 percent, compared to its growth of 7.2 percent in October 2010, the report said.
Coal, crude oil, natural gas, petroleum refinery products and fertiliser sectors declined in October, while cement output remained flat, it said.
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