The latest data released by the Central Statistical Organisation on Friday showed growth of industrial production stood at 12.38 per cent in April 2007 and 10.92 per cent in May.
Analysts said the slowdown in industrial production was caused by the manufacturing sector, growth in which has also dipped in the past few months.
Manufacturing, which makes up nearly 80 per cent of industrial production, grew 10.6 per cent in June, compared with 11.7 per cent in May and 13.67 per cent in April 2007.
"The June growth figures are not very low but on a monthly basis, it has shown a dip. The economy is showing signs of a moderate slowdown. This is because of the hike in interest rates and the appreciation of the rupee against the dollar," said Abheek Barua, chief economist of HDFC Bank.
Electricity production registered growth of 6.8 per cent in June, the lowest in the past three months. Mining sector growth was 3.6 per cent.
"In the coming months, we will see a moderate rate of growth of industrial production and the average for this year could be 9.6 per cent," Barua added.
Growth in consumer goods was 4.15 per cent, the lowest in the past three months.