India's industrial production unexpectedly contracted 1.6 percent in May from a year earlier, government data showed on Friday.
Analysts polled by Reuters had expected output to grow 1.6 percent annually. April's output growth was revised down to an annual 1.9 percent from 2.3 percent earlier.
Manufacturing sector, which constitutes about 76 percent of industrial production, shrank 2.0 percent from a year earlier, the federal statistics office said.
Capital goods production, a barometer for investments in the economy, contracted an annual 2.7 percent in May from a year earlier.