Market tanks as stimulus hopes dim; CEA asks companies to change mindset

CEA Subramanian said it would be a 'moral hazard' if the government were to use public money to cushion private losses

Stocks slid more than 1.5% on Thursday as comments from key policymakers failed to assure investors that the government was serious about taking steps to revive economic growth.

A slowdown in Asia's third-largest economy has dampened demand for everything from cars to underwear, with the crucial automobile manufacturing sector hit particularly hard, prompting calls from companies for a fiscal stimulus.

Chief economic adviser Krishnamurthy Subramanian said companies should not depend on the government for a stimulus and need to change their mindset.

Subramanian said it would be a 'moral hazard' if the government were to use public money to cushion private losses, but