The Index for Industrial Production fell by 1.9% in October compared to a 0.7% in September, reported ANI. The sharp fall was led by the manufacturing and mining sectors, which declined by 2.4% and 1.1% respectively. However, there was a 1.1% increase in the generation of electricity during the month.

Twelve out of 22 industry groups reported negative growth during October, with “electrical machinery & apparatus” falling by 58.3%. A 29.5% decline was reported in “office, accounting and computing machinery”, with a 12.3% fall in “wood and products of wood & cork except furniture’, reported NDTV.

The output of capital goods also fell by 25.9% during the month. The overall fall comes as India grapples with a cash crunch caused by the demonetisation of Rs 500 and Rs 1,000 currency notes on November 8. The contraction is likely to increase in the coming months as the full effects of the government’s move take hold.