I have tried everything given and the tutorials all point in the same direction about using mingw as a compiler in python instead of visual c++.
I do have visual c++ and mingw both. Problem started coming when I wanted to install using pip. It always gave Unable to find vcvarsall.bat
So as per suggestions I created a file distutils.cfg
under the following path c:/python27/Lib/distutils/
and added the following two lines:
[build]
compiler=mingw32
However, this file has no effect whatsoever. The same error still exists while using pip. I am trying to install numpy by the way currently although the error came earlier also.