At 6.4 per cent industrial production was sharply lower than the growth rate of 10.7 per cent in August and an expected 9.9 per cent growth in September.

Industrial output in the country grew at an annual 9.2 per cent in the first six months of fiscal 2007-08, compared with 11.1 per cent in the same period last year.

September''''s growth is the lowest since October last year when output expanded an annual 4.5 per cent.

Manufacturing output rose 6.6 per cent in September compared with revised annual growth of 10.5 per cent in August.

Manufacturing production posted the weakest gain in almost a year, as output of consumer goods such as refrigerators and washing machines fell 0.6 per cent in September.

Mining output grew 6 per cent while electricity output rose 4.5 per cent.

Automobile production, including buses, cars and motorcycles, fell 6.9 per cent in September from a year earlier.

The saving grace is an 18.6 per cent increase in capital goods production in September, which suggests infrastructure sector support to the nation''''s industrial output

In contrast, industrial output in China accelerated to 18.9 per cent in September, about three times the pace in India, from 17.5 per cent in August.

Higher interest rates have hurt domestic demand and exporters have also been hit by a 12.5 per cent rise in the rupee this year.

Some banks have cut rates for consumer loans to push demand for homes, cars and televisions.