the RBI saying "a complete sacrifice of growth is not in the interest of the economy".
RBI has refrained from cutting interest rate fearing it could fuel inflation. The central bank is scheduled to come out with its next mid-quarter policy on December 18.
As per the IIP data, the output of manufacturing sector, which constitutes over 75 per cent of the index, contracted by 1.5 per cent in September as against a growth of 3.1 per cent in the same month last year.
Meanwhile, the keenly watched auction of telecom spectrum which started this morning got a lukewarm response with no company bidding for pan-India radiowaves as demand concentration was on select areas such as Gujarat and Uttar Pradesh (East).
While Bharti Airtel, Vodafone, Idea Cellular, Telenor and Videocon are bidding for GSM, there are no bidders for the CDMA spectrum after Tata Teleservcies and Videocon pulled out of the race.