On Friday the report released by the government said that the growth is mainly driven by consumer goods and capital goods and manufacturing output.
Manufacturing output rose to 5.2% from earlier year, capital goods rose to 8.8%, consumer goods rose to 5.2% and electricity output rose to 5.9%.
Economic analysts were expecting the growth to be about 2.4 percent and later in January it was revised to 2.8 percent.
Bill Adams, senior international economist at PNC Financial Services Group said, “February’s stronger growth shows Indian industry is catching a tailwind from lower global oil prices, India’s faster growth is due to the positive supply shock of lower oil prices, as well as more credible monetary and fiscal policies that have stabilized the rupee exchange rate over the past year.”
Other indicators such as exports and automobiles are still sluggish in demand.
Government official said that they will be using a different base year and a different methodology to calculate the industrial output data in the next few months.
The government in February has changed the base year from 2004-05 to 2011-12 and with the new methodology the industrial output data becomes less relevant.
“Things are still challenging at the ground level, dynamic policy pronouncements must be implemented with full enthusiasm,” said Alok Shriram, president of the industry body PHD Chamber of Commerce and Industry, if Indians want to improve business then business friendly environment should be created.