Factory output contracts 2.2% in June

India's industrial output contracted by 2.2 percent in June due to a sharp drop in the mining and manufacturing sectors, government data showed on Monday.

The latest data has dampened any hope of early economic revival.

The factory output, measured in terms of Index of Industrial Production (IIP), 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 per cent during July from a fall of 3.2 per cent in the corresponding month of last year. In May, the sector's output contracted by 2 per cent.

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 per cent.