<h1>Former central bank governor says repo rate cuts aren't magic bullet for boosting investments amid economic challenges</h1> Former central bank governor stated that recent repo rate cuts are not a 'magic bullet' to boost investments, emphasizing that multiple factors beyond interest rates influence economic growth. The monetary policy committee reduced benchmark rates by 100 basis points, changing policy stance to neutral. The economist noted that current interest rates are not excessively high and rate cut impacts require time to materialize. He highlighted the need for transparent competition and market reforms to encourage corporate investment. Private sector investment share has fallen to 11-year lows at 32.4% of gross fixed capital formation in FY24. Despite headline inflation dropping to 2.1% in June, he suggested monitoring core inflation which remains higher. The former governor expressed concerns about insufficient foreign direct investment despite global supply chain diversification trends, noting India should attract more manufacturing-focused FDI similar to southern states' success.