The growth index of six core industries declined to 3.4 per cent in Octobe,r as compared to 4.6 per cent in the same month last year. The decline is reported, following slow in demand and production cuts imposed by various core sectors. Steel production recently imposed a 20 percent production cut due to the decline   in infrastructure sector as per data released by the commerce and industry ministry.

The index of industrial production (IIP) also reported decline, which was growing by 12.2 per cent in October last year. Six core infrastructure industries constitute around a fourth of the IIP number.

Chief economist at Crisil Ltd said, "The October numbers are not surprising. The core sector has been posting a weak growth throughout the year. It reflects the weakness in the economy."

The reporting month witnessed a decline in crude production at various fields such as Bombay high, causing weak economic activities. Cement production was also low, following reduced demand by the housing and other construction activities amid recessionary waves. However, increase in coal production and high production by the refineries helped to control further decline in the growth rate. 

Vice-president of Axis Bank, Saugata Bhattacharya said, "The IIP manufacturing segment is likely to show a 1-1.5 per cent growth, up from our earlier projections of near-zero per cent based on the Composite Leading Indicators."