Factory output fell to a four-year low and contracted 0.1 per cent in June following poor performance of manufacturing and mining sectors.

This is the lowest growth since June 2013 when the Index of Industrial Production (IIP) contracted by 1 per cent.

In contrast, IIP grew by a healthy 8 per cent in June 2016. IIP growth for May has also been revised upwards to 2.8 per cent.

Official data released on Friday showed that factory output grew by a mere two per cent in the first quarter of the fiscal as against 7.1 per cent growth last fiscal.