1) The growth has come mostly from 15.5% growth in consumer durables. This has been possible due to rural demand supported by governmental expenditure and residual demand from the 6th pay commission largesse. This is not going to last
2) Weak monsoon (with severe droughts in some places and major flood in others) would put a break in rural demand going forward
3) There is some case of inventory built up taking place which pumped up the number. High inventory level and potentially faltering demand can weaken future production prospects
4) While some investments are taking place in some pockets, the rate of investment might slowdown in some time, as rising inflationary pressure would lead to rising intererst rates
In fact, I am inclined to think that even the June growth number will be revised downward as has happened in the case of both April and May numbers.
Clearly, sustainability is the key and I am not comfortable with the idea that demand is rebounding.