The manufacturing sector, which accounts for most of the industrial production index, expanded 0.1 percent, with production of capital goods, a key indicator of investment, shrinking 16.3 percent.

Data published on May 31 showed the Indian economy expanded 5.3 percent in the January-March period, the slowest quarterly growth figure in nine years.

Analysts polled by Dow Jones Newswires had expected industrial production to increase 1.0 percent, based on a median of their predictions, after a contraction of 3.5 percent in March.