India's industrial production slipped to an 18-month low, contracting by 0.8 per cent in August, mainly due to a decline in output of the manufacturing and mining sectors, according to official data released on Wednesday.

The data showed that the previous low in industrial output growth was a contraction of 3.2 per cent in February 2021.

Factory output, measured in terms of the Index of Industrial Production (IIP), had expanded by 13 per cent in August 2021. The IIP grew by 2.2 per cent in July this year.

The manufacturing sector shrank by 0.7 per cent in August 2022 compared to the 11.1 per cent growth recorded in the year-ago period, as per the data released by the Statistics and Programme Implementation Ministry.

The power sector showed a growth of 1.4 per cent against a 16 per cent rise a year ago. The mining sector witnessed a contraction of 3.9 per cent in August 2022, whereas there was a growth of 23.3 per cent in the year-ago period.

During April-August this year, IIP rose 7.7 per cent against 29 per cent growth in the same period a year ago.

Capital goods output, which is a barometer of investments, rose five per cent in August 2022 compared to 20 per cent growth in the year-ago month.

The consumer durables segment declined 2.5 per cent from 11.1 per cent growth a year ago.

The primary goods segment, which accounts for nearly 34 per cent of the index, expanded 1.7 per cent in August compared to 16.9 per cent growth in the year-ago period.

The ministry said the growth rates over the corresponding period of the previous year are to be interpreted, considering the unusual circumstances on account of the COVID-19 pandemic since March 2020.