In September 2012, the Index of Industrial Production (IIP) declined 0.4%, mainly on account of a poor show by the capital goods and consumer durables sectors, which contracted 12.2% and 1.7%, respectively, implying a slowdown in investment activity and demand.

The contraction in IIP was despite the 8-core industries, with a combined weight of 38% on IIP, growing a robust 5.1% in the same month.