India's industrial production growth declined for the second consecutive month in December, giving a big blow to hopes of a revival of economic growth.

While overall industrial production growth declined 0.6 per cent, the manufacturing sector growth contracted 0.7 per cent. It may be noted here that the manufacturing sector contributes nearly 15 per cent to the country's overall gross domestic product (GDP).

The mining sector shrank 4 per cent, mainly because of regulatory issues faced by the sector in several states. Consumer durables, which include fans, refrigerators and air conditioners, shrank 8.2 per cent; while the consumer non-durables contracted 1.4 per cent in December year-on-year.

Electricity sector could grow just 5.2 per cent in the month under review, against an expansion of 9.1 per cent in the corresponding month of the previous year.

Chandrajit Banerjee, director general of Confederation of Indian Industries (CII), urged the government to take required steps in the Budget to revive demand and boost confidence among investors.

Speaking on the topic, Banerjee said, "The least we expect is that the Union Budget would not consider raising any taxes or duties and would refrain from introducing new taxes."

Naina Lal Kidwai, the president of Ficci, stressed that there was a great need to revive the investment sentiment. She called for a high-level committee under the Prime Minister to inspect and address the issues responsible for industrial slowdown.