India's industrial production unexpectedly contracted 1.6 per cent in May from a year earlier, government data showed on Friday.
Analysts polled by Reuters had expected output to grow 1.6 per cent annually. April's output growth was revised down to an annual 1.9 per cent from 2.3 per cent earlier.
Manufacturing sector, which constitutes about 76 per cent of industrial production, shrank 2.0 per cent from a year earlier, the federal statistics office said.
Capital goods production, a barometer for investments in the economy, contracted an annual 2.7 per cent in May from a year earlier.
CPI inflation picks up to 9.87 per cent in June
India's annual consumer price inflation picked up in June to 9.87 per cent, after slowing for three straight months, government data showed on Friday.
Food prices for consumers rose an annual 11.84 per cent in June, faster than an annual rise of 10.65 per cent in May.
Unlike most central banks, the Reserve Bank of India mainly uses the wholesale price index (WPI) for setting its monetary policy.