These companies have a turnover ranging from Rs.1 crore to Rs.116,000 crore and are from varied sectors.

According to the respondents, while the companies are still to get out of the shock resulting from the global economic crisis, the poor progress and spread of monsoon this year could act as a dampener for the economy.

Besides a weak demand, the factors adversely affecting the performance of Indian corporates are the rising cost of raw materials, rising manpower costs and high cost of credit with 55 percent, 45 percent and 41 percent of the participating companies respectively complaining about the same.

About 27 percent of the respondents, largely from the small and medium enterprise segment, feel constrained about credit availability.

On availability of credit from banks, 70 percent respondents felt that high fiscal deficit and the government's massive borrowing programme may lead to hardening of interest rates and crowding out of the private sector from the credit market in the coming months.