Inflation in India rose to 8.9% from 8.3% in February, driven by fuel and manufacturing costs.
The government has announced that the inflation rate for January has also been revised upwards to 9.35% from 8.23%.
Earlier this week the International Monetary Fund warned about inflation building in Asia's fast-growing economies.
The IMF said 'boom-like dynamics' should not be allowed to get out of control.
The BBC reports the Reserve Bank of India has raised its key interest rate eight times since March 2010.
The cost of borrowing currently stands at 6.75%.