A month after the government decision to demonetise a high value currency, the index of industrial production (IIP) contracted by 0.4 per cent in December 2016 and manufacturing growth dipped by 2 per cent.

IIP had however, contracted by 0.9 per cent in December 2015. It grew 5.6 per cent in November 2016.

Data released by the Central Statistics Office on Friday revealed that electricity production grew 6.3 per cent in December and mining sector production increased by 5.2 per cent.

The cumulative growth for the period April-December 2016 over the corresponding period of the previous year stands at 0.3 percent, it said.